U N I T E D C O M M U N I T Y B A N K S , I N C

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from ___________ to ___________

Commission file number 001-35095

UNITED COMMUNITY BANKS, INC.(Exact name of registrant as specified in its charter)

Georgia 58-1807304(State of incorporation) (I.R.S. Employer Identification No.)

125 Highway 515 East Blairsville, Georgia 30512

(Address of principal executive offices) (Zip code)

(706) 781-2265(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class Trading Symbol(s) Name of Each Exchange on Which RegisteredCommon stock, par value $1 per share UCBI Nasdaq Global Select Market

Depositary shares, each representing 1/1000th interest in a share of Series I Non-Cumulative Preferred Stock UCBIO Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during thepreceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for thepast 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 ofRegulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerginggrowth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 ofthe Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new orrevised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 86,627,703 shares of the registrant’s common stock, par value $1 per share, outstanding as of July 31, 2021.

UNITED COMMUNITY BANKS, INC.FORM 10-Q

INDEX

Glossary of Defined Terms 3Forward Looking Statements 4

PART I - Financial Information Item 1. Financial Statements.

Consolidated Balance Sheets (unaudited) at June 30, 2021 and December 31, 2020 5 Consolidated Statements of Income (unaudited) for the Three and Six Months Ended June 30, 2021 and 2020 6 Consolidated Statements of Comprehensive Income (unaudited) for the Three and Six Months Ended June 30, 2021 and

20207

Consolidated Statements of Changes in Shareholders’ Equity (unaudited) for the Three and Six Months Ended June 30,2021 and 2020

8

Consolidated Statements of Cash Flows (unaudited) for the Six Months Ended June 30, 2021 and 2020 9 Notes to Consolidated Financial Statements 10 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 33 Item 3. Quantitative and Qualitative Disclosures About Market Risk. 54 Item 4. Controls and Procedures. 54

PART II - Other Information Item 1. Legal Proceedings. 55 Item 1A. Risk Factors. 55 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 55 Item 6. Exhibits. 56

2

Glossary of Defined Terms

The following terms may be used throughout this report, including the consolidated financial statements and related notes.

Term Definition2020 10-K Annual Report on Form 10-K for the year ended December 31, 2020ACL Allowance for credit lossesAFS Available-for-saleALCO Asset/Liability Management CommitteeAOCI Accumulated other comprehensive income (loss)ASU Accounting standards updateBank United Community BankBoard United Community Banks Inc., Board of DirectorsBOLI Bank-owned life insuranceCARES Act Coronavirus Aid, Relief, and Economic Security ActCECL Current expected credit loss modelCET1 Common equity tier 1CME Chicago Mercantile ExchangeCompany United Community Banks Inc. (interchangeable with "United" below)CVA Credit valuation adjustmentsFASB Financial Accounting Standards BoardFDIC Federal Deposit Insurance CorporationFederal Reserve Federal Reserve SystemFHLB Federal Home Loan BankFTE Fully taxable equivalentGAAP Accounting principles generally accepted in the United States of AmericaGSE U.S. government-sponsored enterpriseHELOC Home equity lines of creditHolding Company United Community Banks, Inc. on an unconsolidated basisHTM Held-to-maturityLIBOR London Interbank Offered RateMD&A Management's Discussion and Analysis of Financial Condition and Results of OperationsMBS Mortgage-backed securitiesNOW Negotiable order of withdrawalNPA Nonperforming assetOCI Other comprehensive income (loss)PCD Purchased credit deteriorated loansPPP Paycheck Protection ProgramReport Quarterly Report on Form 10-QSBA United States Small Business AdministrationSeaside Seaside National Bank & Trust, subsidiary bank of Three Shores Bancorporation, Inc.SEC Securities and Exchange CommissionTDR Troubled debt restructuringThree Shores Three Shores Bancorporation, Inc., parent company of Seaside National Bank & TrustU.S. Treasury United States Department of the TreasuryUnited United Community Banks, Inc. and its direct and indirect subsidiariesUSDA United States Department of Agriculture

3

Cautionary Note Regarding Forward-looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.Forward-looking statements are neither statements of historical or current fact nor are they assurances of future performance and generally can be identifiedby the use of forward-looking terminology such as “believes”, “expects”, “may”, “will”, “could”, “should”, “projects”, “plans”, “goal”, “targets”,“potential”, “estimates”, “pro forma”, “seeks”, “intends”, or “anticipates”, or similar expressions. Forward-looking statements include discussions ofstrategy, financial projections, guidance and estimates (including their underlying assumptions), statements regarding plans, objectives, expectations orconsequences of various transactions or events, and statements about our future performance, operations, products and services, and should be viewed withcaution.

Because forward-looking statements relate to the future, they are subject to known and unknown risks, uncertainties, assumptions, and changes incircumstances, many of which are beyond our control, and that are difficult to predict as to timing, extent, likelihood and degree of occurrence, and thatcould cause actual results to differ materially from the results implied or anticipated by the statements. Important factors that could cause our actual resultsand financial condition to differ materially from those indicated in the forward-looking statements include, but are not limited to the following:

• negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumerconfidence, the financial condition of our borrowers and consumer spending habits, which may affect, among other things, the levels of non-performing assets, charge-offs and provision expense;

• changes in loan underwriting, credit review or loss policies associated with economic conditions, examination conclusions or regulatory developments,either as they currently exist or as they may be affected by conditions associated with the COVID-19 pandemic;

• the COVID-19 pandemic and its continuing effects on the economic and business environments in which we operate;• strategic, market, operational, liquidity and interest rate risks associated with our business;• continuation of historically low interest rates coupled with other potential fluctuations or unanticipated changes in the interest rate environment,

including interest rate changes made by the Federal Reserve, the discontinuation of LIBOR as an interest rate benchmark, and cash flow reassessments,may reduce net interest margin and/or the volumes and values of loans made or held as well as the value of other financial assets;

• our lack of geographic diversification and any unanticipated or greater than anticipated adverse conditions in the national or local economies in whichwe operate;

• our loan concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries orsectors in the national or local economies in which we operate;

• the risks of expansion into new geographic or product markets;• risks with respect to pending or future mergers or acquisitions, including our ability to successfully expand and complete acquisitions and integrate

businesses and operations that we acquire;• our ability to attract and retain key employees;• competition from financial institutions and other financial service providers, including non-bank financial technology providers, and our ability to

attract customers from other financial institutions;• losses due to fraudulent and negligent conduct of our customers, third party service providers or employees;• cybersecurity risks and the vulnerability of our network and online banking portals, and the systems of parties with whom we contract, to unauthorized

access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches that could adverselyaffect our business and financial performance or reputation;

• our reliance on third parties to provide key components of our business infrastructure and services required to operate our business;• the risk that we may be required to make substantial expenditures to keep pace with regulatory initiatives and the rapid technological changes in the

financial services market;• the availability of and access to capital;• legislative, regulatory or accounting changes that may adversely affect us;• volatility in the ACL resulting from the CECL methodology, either alone or as that may be affected by conditions arising out of the COVID-19

pandemic;• adverse results (including judgments, costs, fines, reputational harm, inability to obtain necessary approvals and/or other negative effects) from current

or future litigation, regulatory proceedings, examinations, investigations, or similar matters, or developments related thereto;• any matter that would cause us to conclude that there was impairment of any asset, including intangible assets, such as goodwill;• limitations on our ability to declare and pay dividends and other distributions from the Bank to the Holding Company, which could affect Holding

Company liquidity, including the ability to pay dividends to shareholders or undertake other capital initiatives, such as share repurchases; and• other risks and uncertainties disclosed in documents filed or furnished by us with or to the SEC, any of which could cause actual results to differ

materially from future results expressed, implied or otherwise anticipated by such forward-looking statements.

We caution readers that the foregoing list of factors is not exclusive, is not necessarily in order of importance and readers should not place undue relianceon forward-looking statements. Additional factors that may cause actual results to differ materially from those contemplated by any forward-lookingstatements also may be found in our 2020 10-K (including the “Risk Factor” section of that report), Quarterly Reports on Form 10-Q, and Current Reportson Form 8-K filed with the SEC and available at the SEC’s website at http://www.sec.gov. We do not intend to and, except as required by law, herebydisclaim any obligation to update or revise any forward-looking statement contained in this Form 10-Q, which speaks only as of the date hereof, whether asa result of new information, future events, or otherwise. The financial statements and information contained herein have not been reviewed, or confirmedfor accuracy or relevance, by the FDIC or any other regulator.

4

Part I. FINANCIAL INFORMATIONItem 1. Financial Statements

UNITED COMMUNITY BANKS, INC.Consolidated Balance Sheets (Unaudited)(in thousands, except share data)

June 30,2021

December 31, 2020

ASSETS Cash and due from banks $ 121,589 $ 148,896 Interest-bearing deposits in banks 1,297,808 1,459,723 Cash and cash equivalents 1,419,397 1,608,619

Debt securities available-for-sale 4,075,781 3,224,721 Debt securities held-to-maturity (fair value $861,488 and $437,193, respectively) 852,404 420,361 Loans held for sale at fair value 98,194 105,433 Loans and leases held for investment 11,390,746 11,370,815

Less allowance for credit losses - loans and leases (111,616) (137,010)Loans and leases, net 11,279,130 11,233,805

Premises and equipment, net 224,980 218,489 Bank owned life insurance 203,449 201,969 Accrued interest receivable 43,521 47,672 Net deferred tax asset 32,918 38,411 Derivative financial instruments 58,489 86,666 Goodwill and other intangible assets, net 379,909 381,823 Other assets 227,551 226,405 Total assets $ 18,895,723 $ 17,794,374

LIABILITIES AND SHAREHOLDERS’ EQUITYLiabilities:

Deposits:Noninterest-bearing demand $ 6,260,756 $ 5,390,291 Interest-bearing deposits 10,067,011 9,842,067

Total deposits 16,327,767 15,232,358 Long-term debt 261,919 326,956 Derivative financial instruments 27,089 29,003 Accrued expenses and other liabilities 192,662 198,527

Total liabilities 16,809,437 15,786,844 Shareholders' equity:

Preferred stock, $1 par value: 10,000,000 shares authorized; Series I, $25,000 per share liquidation preference; 4,000shares issued and outstanding 96,422 96,422 Common stock, $1 par value: 200,000,000 and 150,000,000 shares authorized, respectively; 86,664,894 and 86,675,279

shares issued and outstanding, respectively 86,665 86,675 Common stock issuable: 571,580 and 600,834 shares, respectively 10,650 10,855 Capital surplus 1,636,875 1,638,999 Retained earnings 244,006 136,869 Accumulated other comprehensive income 11,668 37,710 Total shareholders' equity 2,086,286 2,007,530 Total liabilities and shareholders' equity $ 18,895,723 $ 17,794,374

See accompanying notes to consolidated financial statements (unaudited).

5

UNITED COMMUNITY BANKS, INC.Consolidated Statements of Income (Unaudited)(in thousands, except per share data)

Three Months EndedJune 30,

Six Months EndedJune 30,

2021 2020 2021 2020Interest revenue:

Loans, including fees $ 128,058 $ 107,862 $ 253,784 $ 225,925 Investment securities, including tax exempt of $2,255 and $1,570 and $4,405 and $3,093,respectively 17,542 15,615 32,990 33,009 Deposits in banks and short-term investments 209 128 577 1,218

Total interest revenue 145,809 123,605 287,351 260,152

Interest expense:Deposits 3,620 11,271 8,839 26,346 Short-term borrowings — — 2 2 Long-term debt 3,813 3,030 8,070 5,894

Total interest expense 7,433 14,301 16,911 32,242 Net interest revenue 138,376 109,304 270,440 227,910

(Release of) provision for credit losses (13,588) 33,543 (25,869) 55,734 Net interest revenue after provision for credit losses 151,964 75,761 296,309 172,176

Noninterest income:Service charges and fees 8,335 6,995 15,905 15,633 Mortgage loan gains and other related fees 11,136 23,659 33,708 31,969 Wealth management fees 3,822 1,324 7,327 2,964 Gains from sales of other loans, net 4,123 1,040 5,153 2,714 Securities gains, net 41 — 41 — Other 8,384 7,220 18,412 12,772

Total noninterest income 35,841 40,238 80,546 66,052 Total revenue 187,805 115,999 376,855 238,228

Noninterest expenses:Salaries and employee benefits 59,414 51,811 119,999 103,169 Communications and equipment 7,408 6,556 14,611 12,502 Occupancy 7,078 5,945 14,034 11,659 Advertising and public relations 1,493 2,260 2,692 3,534 Postage, printing and supplies 1,618 1,613 3,440 3,283 Professional fees 4,928 4,823 9,162 8,920 Lending and loan servicing expense 3,181 3,189 6,058 5,482 Outside services - electronic banking 2,285 1,796 4,503 3,628 FDIC assessments and other regulatory charges 1,901 1,558 3,797 3,042 Amortization of intangibles 929 987 1,914 2,027 Merger-related and other charges 1,078 397 2,621 1,205 Other 4,227 3,045 7,903 7,067

Total noninterest expenses 95,540 83,980 190,734 165,518 Income before income taxes 92,265 32,019 186,121 72,710

Income tax expense 22,005 6,923 42,155 15,730 Net income $ 70,260 $ 25,096 $ 143,966 $ 56,980

Net income available to common shareholders $ 68,109 $ 24,913 $ 139,634 $ 56,554

Net income per common share:Basic $ 0.78 $ 0.32 $ 1.60 $ 0.71 Diluted 0.78 0.32 1.60 0.71

Weighted average common shares outstanding:Basic 87,289 78,920 87,306 79,130 Diluted 87,421 78,924 87,443 79,186


6

UNITED COMMUNITY BANKS, INC.Consolidated Statements of Comprehensive Income (Unaudited)(in thousands)

Three Months Ended June 30, Six Months Ended June 30,

Before-taxAmount

Tax(Expense)

BenefitNet of TaxAmount

Before-taxAmount

Tax(Expense)

BenefitNet of TaxAmount

2021Net income $ 92,265 $ (22,005) $ 70,260 $ 186,121 $ (42,155) $ 143,966 Other comprehensive income:

Unrealized gains (losses) on available-for-sale securities:Unrealized holding gains (losses) arising during the period 10,268 (1,470) 8,798 (39,967) 11,080 (28,887)Reclassification adjustment for gains included in net income (41) 14 (27) (41) 14 (27)

Net unrealized gains (losses) 10,227 (1,456) 8,771 (40,008) 11,094 (28,914)Derivative instruments designated as cash flow hedges:

Unrealized holding gains (losses) on derivatives arising during the period (2,739) 700 (2,039) 3,044 (777) 2,267 Reclassification of losses on derivative instruments realized in net income 147 (37) 110 291 (74) 217

Net cash flow hedge activity (2,592) 663 (1,929) 3,335 (851) 2,484 Amortization of prior service cost and actuarial losses included in net periodicpension cost for defined benefit pension plan 261 (67) 194 522 (134) 388

Total other comprehensive income (loss) 7,896 (860) 7,036 (36,151) 10,109 (26,042)Comprehensive income $ 100,161 $ (22,865) $ 77,296 $ 149,970 $ (32,046) $ 117,924

2020Net income $ 32,019 $ (6,923) $ 25,096 $ 72,710 $ (15,730) $ 56,980 Other comprehensive income:

Unrealized gains on available-for-sale securities 28,985 (6,969) 22,016 42,670 (10,402) 32,268 Amortization of losses included in net income on available-for-sale securitiestransferred to held-to-maturity 96 (23) 73 179 (43) 136 Derivative instruments designated as cash flow hedges:

Unrealized holding losses on derivatives arising during the period (828) 211 (617) (828) 211 (617)Reclassification of losses on derivative instruments realized in net income 67 (17) 50 67 (17) 50

Net cash flow hedge activity (761) 194 (567) (761) 194 (567)Amortization of prior service cost and actuarial losses included in net periodicpension cost for defined benefit pension plan 214 (55) 159 428 (109) 319

Total other comprehensive income 28,534 (6,853) 21,681 42,516 (10,360) 32,156 Comprehensive income $ 60,553 $ (13,776) $ 46,777 $ 115,226 $ (26,090) $ 89,136


7

UNITED COMMUNITY BANKS, INC.Consolidated Statement of Changes in Shareholders’ Equity (Unaudited)(in thousands except share data)

Shares ofCommon

StockPreferred

StockCommon

Stock

CommonStock

IssuableCapitalSurplus

RetainedEarnings

Accumulated Other

ComprehensiveIncome (Loss) Total

Balance at March 31, 2020 78,283,544 $ — $ 78,284 $ 10,534 $ 1,478,719 $ 54,206 $ 18,869 $ 1,640,612 Net income 25,096 25,096 Other comprehensive income 21,681 21,681 Issuance of preferred stock 96,660 96,660 Common stock dividends ($0.18 per share) (14,312) (14,312)Impact of equity-based compensation awards 38,247 38 11 1,524 1,573 Impact of other United sponsored equity plans 13,336 13 101 221 335 Balance at June 30, 2020 78,335,127 $ 96,660 $ 78,335 $ 10,646 $ 1,480,464 $ 64,990 $ 40,550 $ 1,771,645

Balance at March 31, 2021 86,776,508 $ 96,422 $ 86,777 $ 10,485 $ 1,640,583 $ 192,185 $ 4,632 $ 2,031,084 Net income 70,260 70,260 Other comprehensive income 7,036 7,036 Preferred stock dividends (1,719) (1,719)Common stock dividends ($0.19 per share) (16,720) (16,720)Purchases of common stock (150,000) (150) (4,951) (5,101)Impact of equity-based compensation awards 35,675 35 71 1,166 1,272 Impact of other United sponsored equity plans 2,711 3 94 77 174 Balance at June 30, 2021 86,664,894 $ 96,422 $ 86,665 $ 10,650 $ 1,636,875 $ 244,006 $ 11,668 $ 2,086,286

Balance at December 31, 2019 79,013,729 — 79,014 11,491 1,496,641 40,152 8,394 1,635,692 Net income 56,980 56,980 Other comprehensive income 32,156 32,156 Issuance of preferred stock 96,660 96,660 Purchases of common stock (826,482) (827) (19,955) (20,782)Common stock dividends ($0.36 per share) (28,613) (28,613)Impact of equity-based compensation awards 62,252 62 676 2,839 3,577 Impact of other United sponsored equity plans 85,628 86 (1,521) 939 (496)Adoption of new accounting standard (3,529) (3,529)Balance at June 30, 2020 78,335,127 $ 96,660 $ 78,335 $ 10,646 $ 1,480,464 $ 64,990 $ 40,550 $ 1,771,645

Balance at December 31, 2020 86,675,279 96,422 86,675 10,855 1,638,999 136,869 37,710 2,007,530 Net income 143,966 143,966 Other comprehensive loss (26,042) (26,042)Purchases of common stock (150,000) (150) (4,951) (5,101)Preferred stock dividends (3,438) (3,438)Common stock dividends ($0.38 per share) (33,391) (33,391)Impact of equity-based compensation awards 70,845 71 647 1,570 2,288 Impact of other United sponsored equity plans 68,770 69 (852) 1,257 474 Balance at June 30, 2021 86,664,894 $ 96,422 $ 86,665 $ 10,650 $ 1,636,875 $ 244,006 $ 11,668 $ 2,086,286


8

UNITED COMMUNITY BANKS, INC.Consolidated Statements of Cash Flows (Unaudited)(in thousands)

Six Months Ended June 30,2021 2020

Operating activities: Net income $ 143,966 $ 56,980 Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion, net (2,961) 5,205 (Release of) provision for credit losses (25,869) 55,734 Stock based compensation 3,141 4,256 Deferred income tax expense (benefit) 14,621 (2,356)Securities gains, net (41) — Gains from sales of other loans, net (5,153) (2,714)Changes in assets and liabilities:

Other assets and accrued interest receivable 20,444 (76,407)Accrued expenses and other liabilities 7,071 15,929 Loans held for sale 7,239 (40,993)

Net cash provided by operating activities 162,458 15,634

Investing activities:Debt securities held-to-maturity:

Proceeds from maturities and calls 35,590 19,889 Purchases (468,740) (43,118)

Debt securities available-for-sale:Proceeds from sales 78,111 1,000 Proceeds from maturities and calls 456,899 296,744 Purchases (1,437,481) (110,481)

Net decrease (increase) in loans 8,861 (1,306,120)Equity investments, outflows (8,432) (8,583)Equity investments, inflows 5,026 — Proceeds from sales of premises and equipment 840 102 Purchases of premises and equipment (14,565) (3,655)Proceeds from sale of other real estate 2,042 278 Other investing activities 767 2,730

Net cash used in investing activities (1,341,082) (1,151,214)

Financing activities:Net increase in deposits 1,096,791 1,805,016 Repayment of long-term debt (65,632) — Proceeds from FHLB advances 5,000 5,000 Repayment of FHLB advances (5,000) (5,000)Proceeds from issuance of senior debentures, net of issuance costs — 98,638 Proceeds from issuance of common stock for dividend reinvestment and employee benefit plans 320 426 Cash paid for shares withheld to cover payroll taxes upon vesting of restricted stock units (945) (1,868)Proceeds from issuance of Series I preferred stock, net of issuance costs — 96,660 Repurchase of common stock (5,101) (20,782)Cash dividends on common stock (32,593) (28,755)Cash dividends on preferred stock (3,438) —

Net cash provided by financing activities 989,402 1,949,335

Net change in cash and cash equivalents (189,222) 813,755 Cash and cash equivalents, at beginning of period 1,608,619 515,206 Cash and cash equivalents, at end of period $ 1,419,397 $ 1,328,961

Supplemental disclosures of cash flow information:Significant non-cash investing and financing transactions:

Unsettled government guaranteed loan sales $ 6,435 $ 289 Transfers of loans to foreclosed properties 1,333 355


9

UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIESNotes to Consolidated Financial Statements (Unaudited)

Note 1 – Accounting Policies United’s accounting and financial reporting policies conform to GAAP and reporting guidelines of banking regulatory authorities. The accompanyinginterim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. A moredetailed description of United’s accounting policies is included in its 2020 10-K. In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanyingfinancial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. Theresults for interim periods are not necessarily indicative of results for the full year or any other interim periods. The accompanying unaudited consolidatedfinancial statements should be read in conjunction with the consolidated financial statements and related notes appearing in United’s 2020 10-K.

Note 2 –Accounting Standards Updates and Recently Adopted Standards

Recently Adopted Standards

In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements. In addition to consolidating existing disclosure guidance into a singlecodification section to reduce the likelihood of a required disclosure being missed, this update clarifies the application of select guidance in cases where theoriginal guidance may have been unclear. United adopted this update as of January 1, 2021, with no material impact on the consolidated financialstatements.

In October 2020, the FASB issued ASU No. 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs.This update clarifies that an entity should reevaluate whether a callable debt security meets the criteria to adjust the amortization period of any relatedpremium at each reporting period. United adopted this update as of January 1, 2021, with no material impact on the consolidated financial statements.

In January 2020, the FASB issued ASU No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the EmergingIssues Task Force). This update clarifies whether an entity should consider observable transactions that require it to either apply or discontinue the equitymethod of accounting for the purposes of applying the measurement alternative and how to account for certain forward contracts and purchased options topurchase securities. United adopted this update as of January 1, 2021, with no material impact on the consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update removesseveral exceptions related to intraperiod tax allocation when there is a loss from continuing operations and income from other items, foreign subsidiariesbecoming equity method investments and vice versa, and calculating income taxes in an interim period when a year-to-date loss exceeds the anticipatedloss for the year. The guidance also amends requirements related to franchise tax that is partially based on income, a step up in the tax basis of goodwill,allocation of consolidated tax expense to a legal entity not subject to tax in its separate financial statements, the effects of enacted changes in tax laws andother minor codification improvements regarding employee stock ownership plans and investments in qualified affordable housing projects. United adoptedthis update as of January 1, 2021, with no material impact on the consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): DisclosureFramework - Changes to the Disclosure Requirements for Defined Benefit Plans. The update removes disclosures that are no longer considered costbeneficial, clarifies specific requirements of disclosures, and adds disclosure requirements identified as relevant. United adopted this update as of January1, 2021, with no material impact on the consolidated financial statements.

Recently Issued Standards

In July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments. The update amends thelease classification requirements for lessors to align them with practice under the former lease accounting standard. Specifically, lessors should classify alease with variable lease payments that do not depend on a reference index or rate as an operating lease if certain criteria are met. Adoption of this update,which is effective for United as of January 1, 2022, is not expected to have a material impact on the consolidated financial statements.

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Note 3 – Investment Securities

The amortized cost basis, unrealized gains and losses and fair value of HTM debt securities as of the dates indicated are as follows (in thousands).

AmortizedCost

Gross Unrealized Gains

Gross Unrealized Losses

FairValue

As of June 30, 2021 U.S. Treasuries $ 19,788 $ 267 $ — $ 20,055 U.S. Government agencies & GSEs 59,709 334 351 59,692 State and political subdivisions 248,768 5,742 1,749 252,761 Residential MBS, Agency & GSEs 223,571 3,706 1,079 226,198 Commercial MBS, Agency & GSEs 285,568 4,126 1,950 287,744 Supranational entities 15,000 38 — 15,038

Total $ 852,404 $ 14,213 $ 5,129 $ 861,488

As of December 31, 2020U.S. Government agencies & GSEs $ 10,575 $ 26 $ 11 $ 10,590 State and political subdivisions 197,723 7,658 242 205,139 Residential MBS, Agency & GSEs 113,400 4,774 1 118,173 Commercial MBS, Agency & GSEs 98,663 4,874 246 103,291 Total $ 420,361 $ 17,332 $ 500 $ 437,193

The amortized cost basis, unrealized gains and losses, and fair value of AFS debt securities as of the dates indicated are presented below (in thousands).

AmortizedCost

Gross UnrealizedGains

Gross UnrealizedLosses

FairValue

As of June 30, 2021 U.S. Treasuries $ 138,884 $ 3,196 $ — $ 142,080 U.S. Government agencies & GSEs 153,601 871 1,848 152,624 State and political subdivisions 273,433 17,154 1,241 289,346 Residential MBS, Agency & GSEs 1,831,697 21,089 11,809 1,840,977 Residential MBS, Non-agency 132,100 3,972 4 136,068 Commercial MBS, Agency & GSEs 695,417 4,626 8,676 691,367 Commercial MBS, Non-agency 15,219 1,622 — 16,841 Corporate bonds 150,736 1,329 254 151,811 Asset-backed securities 652,093 2,914 340 654,667

Total $ 4,043,180 $ 56,773 $ 24,172 $ 4,075,781

As of December 31, 2020U.S. Treasuries $ 123,677 $ 4,395 $ — $ 128,072 U.S. Government agencies & GSEs 152,596 701 325 152,972 State and political subdivisions 253,630 20,891 49 274,472 Residential MBS, Agency & GSEs 1,275,551 29,107 766 1,303,892 Residential MBS, Non-agency 174,322 7,499 128 181,693 Commercial MBS, Agency & GSEs 524,852 8,013 597 532,268 Commercial MBS, Non-agency 15,350 1,513 — 16,863 Corporate bonds 70,057 1,711 1 71,767 Asset-backed securities 562,076 1,278 632 562,722

Total $ 3,152,111 $ 75,108 $ 2,498 $ 3,224,721

Securities with a carrying value of $1.15 billion and $1.11 billion were pledged, primarily to secure public deposits, at June 30, 2021 and December 31,2020, respectively.

11


The following table summarizes HTM debt securities in an unrealized loss position as of the dates indicated (in thousands).

Less than 12 Months 12 Months or More Total

Fair ValueUnrealized

Loss Fair ValueUnrealized


LossAs of June 30, 2021 U.S. Government agencies & GSEs $ 10,143 $ 351 $ — $ — $ 10,143 $ 351 State and political subdivisions 85,484 1,749 — — 85,484 1,749 Residential MBS, Agency & GSEs 89,888 1,078 120 1 90,008 1,079 Commercial MBS, Agency & GSEs 125,226 1,950 — — 125,226 1,950

Total unrealized loss position $ 310,741 $ 5,128 $ 120 $ 1 $ 310,861 $ 5,129

As of December 31, 2020U.S. Government agencies & GSEs $ 4,677 $ 11 $ — $ — $ 4,677 $ 11 State and political subdivisions 14,870 242 — — 14,870 242 Residential MBS, Agency & GSEs 999 1 — — 999 1 Commercial MBS, Agency & GSEs 24,956 236 1,352 10 26,308 246

Total unrealized loss position $ 45,502 $ 490 $ 1,352 $ 10 $ 46,854 $ 500

The following table summarizes AFS debt securities in an unrealized loss position as of the dates indicated (in thousands).

Less than 12 Months 12 Months or More Total

Fair ValueUnrealized



LossAs of June 30, 2021 U.S. Government agencies & GSEs $ 78,309 $ 1,848 $ — $ — $ 78,309 $ 1,848 State and political subdivisions 52,132 1,241 — — 52,132 1,241 Residential MBS, Agency & GSEs 897,499 11,799 847 10 898,346 11,809 Residential MBS, Non-agency — — 2,455 4 2,455 4 Commercial MBS, Agency & GSEs 457,568 8,633 1,025 43 458,593 8,676 Corporate bonds 56,854 254 — — 56,854 254 Asset-backed securities 116,960 305 24,710 35 141,670 340

Total unrealized loss position $ 1,659,322 $ 24,080 $ 29,037 $ 92 $ 1,688,359 $ 24,172

As of December 31, 2020U.S. Government agencies & GSEs $ 27,952 $ 324 $ 607 $ 1 $ 28,559 $ 325 State and political subdivisions 9,402 49 — — 9,402 49 Residential MBS, Agency & GSEs 232,199 766 — — 232,199 766 Residential MBS, Non-agency 2,331 128 — — 2,331 128 Commercial MBS, Agency & GSEs 89,918 597 — — 89,918 597 Corporate bonds 1,410 1 — — 1,410 1 Asset-backed securities 87,305 28 53,587 604 140,892 632

Total unrealized loss position $ 450,517 $ 1,893 $ 54,194 $ 605 $ 504,711 $ 2,498

At June 30, 2021, there were 232 AFS debt securities and 49 HTM debt securities that were in an unrealized loss position. United does not intend to sellnor does it believe it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses atJune 30, 2021 were primarily attributable to changes in interest rates.

At June 30, 2021 and December 31, 2020, calculated credit losses and, thus, the related ACL on HTM debt securities were not material due to the highcredit quality of the portfolio, which included securities issued or guaranteed by U.S. Government agencies, GSEs, high credit quality municipalities andsupranational entities. As a result, no ACL was recorded on the HTM portfolio at June 30, 2021 or December 31, 2020. In addition, based on theassessments performed at June 30, 2021 and December 31, 2020, there was no ACL required related to the AFS portfolio.

12


The following table presents accrued interest receivable for the periods indicated on HTM and AFS debt securities (in thousands), which was excludedfrom the estimate of credit losses.

Accrued Interest ReceivableJune 30, 2021 December 31, 2020

HTM $ 2,886 $ 1,784 AFS 9,809 9,114

The amortized cost and fair value of AFS and HTM debt securities at June 30, 2021, by contractual maturity, are presented in the following table (inthousands). Expected maturities may differ from contractual maturities because issuers and borrowers may have the right to call or prepay obligations. AFS HTM Amortized Cost Fair Value Amortized Cost Fair ValueWithin 1 year:

U.S. Treasuries $ 44,930 $ 45,341 $ — $ — U.S. Government agencies & GSEs 279 281 — — State and political subdivisions 20,000 20,000 1,700 1,718 Corporate bonds 11,534 11,556 — —

76,743 77,178 1,700 1,718 1 to 5 years:

U.S. Treasuries 79,030 81,706 — — U.S. Government agencies & GSEs 13,835 13,894 — — State and political subdivisions 43,350 45,580 14,501 15,763 Corporate bonds 71,166 71,855 — —

207,381 213,035 14,501 15,763 5 to 10 years:

U.S. Treasuries 14,924 15,033 19,788 20,055 U.S. Government agencies & GSEs 82,724 81,373 29,604 29,879 State and political subdivisions 86,931 91,420 31,126 32,227 Corporate bonds 67,256 67,515 — — Supranational entities — — 15,000 15,038

251,835 255,341 95,518 97,199 More than 10 years:

U.S. Government agencies & GSEs 56,763 57,076 30,105 29,813 State and political subdivisions 123,152 132,346 201,441 203,053 Corporate bonds 780 885 — —

180,695 190,307 231,546 232,866 Debt securities not due at a single maturity date:Asset-backed securities 652,093 654,667 — — Residential MBS 1,963,797 1,977,045 223,571 226,198 Commercial MBS 710,636 708,208 285,568 287,744

Total $ 4,043,180 $ 4,075,781 $ 852,404 $ 861,488

Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizesAFS securities sales activity for the three and six months ended June 30, 2021 and 2020 (in thousands).

Three Months Ended

June 30,Six Months Ended

June 30, 2021 2020 2021 2020Proceeds from sales $ 78,111 $ — $ 78,111 $ 1,000

Gross realized gains $ 641 $ — $ 641 $ — Gross realized losses (600) — (600) —

Securities gains, net $ 41 $ — $ 41 $ —

Income tax expense attributable to sales $ 14 $ — $ 14 $ —

13


Note 4 – Loans and Leases and Allowance for Credit Losses Major classifications of the loan and lease portfolio (collectively referred to as the “loan portfolio” or “loans”) are summarized as of the dates indicated asfollows (in thousands).

June 30, 2021 December 31, 2020Owner occupied commercial real estate $ 2,149,371 $ 2,090,443 Income producing commercial real estate 2,550,243 2,540,750 Commercial & industrial 2,234,646 2,498,560 Commercial construction 926,809 967,305 Equipment financing 968,805 863,830

Total commercial 8,829,874 8,960,888 Residential mortgage 1,472,608 1,284,920 HELOC 660,881 697,117 Residential construction 288,708 281,430 Consumer 138,675 146,460

Total loans 11,390,746 11,370,815 Less allowance for credit losses - loans (111,616) (137,010)

Loans, net $ 11,279,130 $ 11,233,805

Commercial and industrial loans as of June 30, 2021 and December 31, 2020 included $472 million and $646 million of PPP loans, respectively.

Accrued interest receivable related to loans totaled $29.7 million and $35.5 million at June 30, 2021 and December 31, 2020, respectively, and wasreported in accrued interest receivable on the consolidated balance sheets.

At June 30, 2021 and December 31, 2020, the loan portfolio was subject to blanket pledges on certain qualifying loan types with the FHLB and FRB tosecure contingent funding sources.

The following table presents loans held for investment that were sold in the periods indicated (in thousands). The gains and losses on these loan sales wereincluded in noninterest income on the consolidated statements of income.

Three Months Ended June 30, Six Months Ended June 30,2021 2020 2021 2020

Guaranteed portion of SBA/USDA loans $ 32,303 $ 14,035 $ 43,648 $ 18,069 Equipment financing receivables 18,908 1,704 19,967 23,921

Total $ 51,211 $ 15,739 $ 63,615 $ 41,990

At June 30, 2021 and December 31, 2020, equipment financing assets included leases of $37.8 million and $36.8 million, respectively. The components ofthe net investment in leases, which included both sales-type and direct financing, are presented below (in thousands).

June 30, 2021 December 31, 2020Minimum future lease payments receivable $ 39,948 $ 38,934 Estimated residual value of leased equipment 3,269 3,263 Initial direct costs 668 672 Security deposits (672) (727)Purchase accounting premium 69 117 Unearned income (5,525) (5,457)

Net investment in leases $ 37,757 $ 36,802

(1)

(1)

14


Minimum future lease payments expected to be received from equipment financing lease contracts as of June 30, 2021 were as follows (in thousands):

Year Remainder of 2021 $ 8,161 2022 13,830 2023 9,601 2024 5,161 2025 2,741 Thereafter 454

Total $ 39,948

Nonaccrual and Past Due LoansThe following table presents the aging of the amortized cost basis in loans by aging category and accrual status as of the dates indicated (in thousands).Past due status is based on contractual terms of the loan. The accrual of interest is generally discontinued when a loan becomes 90 days past due. Loanswith active COVID-19 deferrals are not reported as past due to the extent they are in compliance with the deferral terms.

Accruing

Current Loans

Loans Past Due

30 - 59 Days 60 - 89 Days > 90 DaysNonaccrual

Loans Total LoansAs of June 30, 2021Owner occupied commercial real estate $ 2,141,403 $ 1,666 $ 174 $ — $ 6,128 $ 2,149,371 Income producing commercial real estate 2,536,332 592 219 — 13,100 2,550,243 Commercial & industrial 2,225,062 1,004 17 — 8,563 2,234,646 Commercial construction 925,376 199 5 — 1,229 926,809 Equipment financing 965,350 911 773 — 1,771 968,805

Total commercial 8,793,523 4,372 1,188 — 30,791 8,829,874 Residential mortgage 1,456,280 2,090 753 — 13,485 1,472,608 HELOC 658,224 1,015 209 — 1,433 660,881 Residential construction 288,032 369 — — 307 288,708 Consumer 138,287 247 34 — 107 138,675

Total loans $ 11,334,346 $ 8,093 $ 2,184 $ — $ 46,123 $ 11,390,746

As of December 31, 2020Owner occupied commercial real estate $ 2,079,845 $ 2,013 $ 3 $ — $ 8,582 $ 2,090,443 Income producing commercial real estate 2,522,743 1,608 1,250 — 15,149 2,540,750 Commercial & industrial 2,480,483 1,176 267 — 16,634 2,498,560 Commercial construction 964,947 231 382 — 1,745 967,305 Equipment financing 856,985 2,431 1,009 — 3,405 863,830

Total commercial 8,905,003 7,459 2,911 — 45,515 8,960,888 Residential mortgage 1,265,019 5,549 1,494 — 12,858 1,284,920 HELOC 692,504 1,942 184 — 2,487 697,117 Residential construction 280,551 365 — — 514 281,430 Consumer 145,770 429 36 — 225 146,460

Total loans $ 11,288,847 $ 15,744 $ 4,625 $ — $ 61,599 $ 11,370,815

15


The following table presents nonaccrual loans by loan class for the periods indicated (in thousands).

Nonaccrual Loans June 30, 2021 December 31, 2020

With noallowance

With anallowance Total

With noallowance

With anallowance Total

Owner occupied commercial real estate $ 3,865 $ 2,263 $ 6,128 $ 6,614 $ 1,968 $ 8,582 Income producing commercial real estate 12,515 585 13,100 10,008 5,141 15,149 Commercial & industrial 7,143 1,420 8,563 2,004 14,630 16,634 Commercial construction 750 479 1,229 1,339 406 1,745 Equipment financing — 1,771 1,771 156 3,249 3,405

Total commercial 24,273 6,518 30,791 20,121 25,394 45,515 Residential mortgage 3,279 10,206 13,485 1,855 11,003 12,858 HELOC 117 1,316 1,433 1,329 1,158 2,487 Residential construction — 307 307 274 240 514 Consumer 1 106 107 181 44 225

Total $ 27,670 $ 18,453 $ 46,123 $ 23,760 $ 37,839 $ 61,599

Risk Ratings United categorizes commercial loans, with the exception of equipment financing receivables, into risk categories based on relevant information about theability of borrowers to service their debt such as: current financial information, historical payment experience, public information, and current industry andeconomic trends, among other factors. United analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on acontinual basis. United uses the following definitions for its risk ratings:

Pass. Loans in this category are considered to have a low probability of default and do not meet the criteria of the risk categories below.

Special Mention. Loans in this category are presently protected from apparent loss; however, weaknesses exist that could cause future impairment,including the deterioration of financial ratios, past due status and questionable management capabilities. These loans require more than the ordinary amountof supervision. Collateral values generally afford adequate coverage, but may not be immediately marketable.

Substandard. These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged. Specific andwell-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accountsexperiencing overdrafts. There is the distinct possibility that United will sustain some loss if deficiencies are not corrected. If possible, immediatecorrective action is taken.

Doubtful. Specific weaknesses characterized as Substandard that are severe enough to make collection in full highly questionable and improbable. There isno reliable secondary source of full repayment. Loss. Loans categorized as Loss have the same characteristics as Doubtful; however, probability of loss is certain. Loans classified as Loss are charged off. Equipment Financing Receivables and Consumer Purpose Loans. United applies a pass / fail grading system to all equipment financing receivables andconsumer purpose loans. Under this system, loans that are on nonaccrual status, become past due 90 days, or are in bankruptcy are classified as “fail” andall other loans are classified as “pass”. For reporting purposes, loans in these categories that are classified as “fail” are reported as substandard and all otherloans are reported as pass.

16


Based on the most recent analysis performed, the amortized cost of loans by risk category by vintage year as of the date indicated is as follows (inthousands).

Term Loans by Origination YearRevolvers

Revolversconverted toterm loans TotalAs of June 30, 2021 2021 2020 2019 2018 2017 Prior

PassOwner occupied commercial realestate $ 348,878 $ 692,889 $ 300,165 $ 173,797 $ 163,854 $ 309,564 $ 48,247 $ 10,973 $ 2,048,367 Income producing commercialreal estate 349,737 772,304 338,003 272,816 214,741 273,090 33,109 12,088 2,265,888 Commercial & industrial 684,472 426,442 195,329 173,366 62,870 103,609 490,906 3,737 2,140,731 Commercial construction 175,452 300,989 167,938 124,411 28,142 12,596 8,054 2,030 819,612 Equipment financing 293,882 331,475 220,386 92,083 25,113 3,634 — — 966,573

Total commercial 1,852,421 2,524,099 1,221,821 836,473 494,720 702,493 580,316 28,828 8,241,171 Residential mortgage 448,846 416,688 136,631 91,877 88,511 268,040 14 4,883 1,455,490 HELOC — — — — — — 643,249 15,303 658,552 Residential construction 135,105 128,013 5,196 3,724 3,776 12,244 56 53 288,167 Consumer 33,625 37,841 16,905 8,636 2,515 2,633 36,126 132 138,413

2,469,997 3,106,641 1,380,553 940,710 589,522 985,410 1,259,761 49,199 10,781,793 Special Mention

Owner occupied commercial realestate 10,313 5,379 15,503 3,839 4,036 8,610 247 286 48,213 Income producing commercialreal estate 12,003 28,577 45,452 37,606 19,349 29,947 — — 172,934 Commercial & industrial 18,804 13,050 7,400 243 1,208 293 18,944 802 60,744 Commercial construction 679 18,763 12,943 17,248 38,377 63 — — 88,073 Equipment financing — — — — — — — — —

Total commercial 41,799 65,769 81,298 58,936 62,970 38,913 19,191 1,088 369,964 Residential mortgage — — — — — — — — — HELOC — — — — — — — — — Residential construction — — — — — — — — — Consumer — — — — — — — — —

41,799 65,769 81,298 58,936 62,970 38,913 19,191 1,088 369,964 Substandard

Owner occupied commercial realestate 10,561 1,636 11,185 8,450 6,871 12,267 1,300 521 52,791 Income producing commercialreal estate 16,656 34,733 2,681 16,799 8,718 31,744 — 90 111,421 Commercial & industrial 1,238 1,638 4,755 7,122 1,882 7,081 8,989 466 33,171 Commercial construction 1,035 432 712 13,496 — 2,444 — 1,005 19,124 Equipment financing 248 786 656 472 54 16 — — 2,232

Total commercial 29,738 39,225 19,989 46,339 17,525 53,552 10,289 2,082 218,739 Residential mortgage 786 1,653 2,336 3,778 1,440 6,340 — 785 17,118 HELOC — — — — — — 68 2,261 2,329 Residential construction — 39 33 52 2 415 — — 541 Consumer — 6 42 30 41 120 — 23 262

30,524 40,923 22,400 50,199 19,008 60,427 10,357 5,151 238,989

Total $ 2,542,320 $ 3,213,333 $ 1,484,251 $ 1,049,845 $ 671,500 $ 1,084,750 $ 1,289,309 $ 55,438 $ 11,390,746

17


Term Loans by Origination Year

Revolvers

Revolversconverted toterm loans TotalAs of December 31, 2020 2020 2019 2018 2017 2016 Prior

PassOwner occupied commercial realestate $ 707,501 $ 368,615 $ 231,316 $ 197,778 $ 201,362 $ 229,667 $ 56,273 $ 9,072 $ 2,001,584 Income producing commercialreal estate 815,799 376,911 361,539 277,769 206,068 198,080 28,542 12,128 2,276,836 Commercial & industrial 1,092,767 287,857 263,439 115,790 92,968 58,359 515,593 3,777 2,430,550 Commercial construction 314,154 217,643 226,308 53,708 30,812 21,985 20,278 3,947 888,835 Equipment financing 413,653 270,664 125,869 39,982 9,404 445 — — 860,017

Total commercial 3,343,874 1,521,690 1,208,471 685,027 540,614 508,536 620,686 28,924 8,457,822 Residential mortgage 468,945 195,213 125,492 120,944 122,013 230,771 18 5,393 1,268,789 HELOC — — — — — — 675,878 17,581 693,459 Residential construction 225,727 30,646 4,026 4,544 3,172 12,546 — 64 280,725 Consumer 54,997 25,528 14,206 4,531 3,595 1,677 41,445 76 146,055

4,093,543 1,773,077 1,352,195 815,046 669,394 753,530 1,338,027 52,038 10,846,850 Special Mention

Owner occupied commercial realestate 8,759 4,088 4,221 10,025 11,138 4,728 100 — 43,059 Income producing commercialreal estate 35,471 42,831 39,954 13,238 24,164 11,337 — 1,681 168,676 Commercial & industrial 1,451 16,315 2,176 630 459 17 6,464 — 27,512 Commercial construction 21,366 272 816 23,292 11,775 477 — — 57,998 Equipment financing — — — — — — — — —

Total commercial 67,047 63,506 47,167 47,185 47,536 16,559 6,564 1,681 297,245 Residential mortgage — — — — — — — — — HELOC — — — — — — — — — Residential construction — — — — — — — — — Consumer — — — — — — — — —

67,047 63,506 47,167 47,185 47,536 16,559 6,564 1,681 297,245 Substandard

Owner occupied commercial realestate 6,586 10,473 7,596 3,717 6,753 8,473 1,528 674 45,800 Income producing commercialreal estate 45,125 8,940 2,179 5,034 31,211 2,652 — 97 95,238 Commercial & industrial 1,545 5,536 6,193 1,684 1,292 1,485 22,170 593 40,498 Commercial construction 2,466 735 13,741 340 1,931 250 — 1,009 20,472 Equipment financing 631 1,392 1,371 306 96 17 — — 3,813

Total commercial 56,353 27,076 31,080 11,081 41,283 12,877 23,698 2,373 205,821 Residential mortgage 2,049 2,106 3,174 1,369 679 5,860 — 894 16,131 HELOC — — — — — — 265 3,393 3,658 Residential construction 106 37 54 4 124 380 — — 705 Consumer — 97 49 60 78 98 — 23 405

58,508 29,316 34,357 12,514 42,164 19,215 23,963 6,683 226,720

Total $ 4,219,098 $ 1,865,899 $ 1,433,719 $ 874,745 $ 759,094 $ 789,304 $ 1,368,554 $ 60,402 $ 11,370,815

Troubled Debt Restructurings and Other ModificationsAs of June 30, 2021 and December 31, 2020, United had TDRs totaling $57.3 million and $61.6 million, respectively. As of June 30, 2021 and December31, 2020, United had remaining deferrals related to the COVID-19 pandemic of approximately $17.8 million and $70.7 million, respectively, whichgenerally represented payment deferrals for up to 90 days. To the extent that these deferrals qualified under either the CARES Act or interagency guidance,they were not considered new TDRs.

18


Loans modified under the terms of a TDR during the three and six months ended June 30, 2021 and 2020 are presented in the following table. In addition,the table presents loans modified under the terms of a TDR that defaulted (became 90 days or more delinquent or otherwise in default of modified terms)during the periods presented and were initially restructured within one year prior to default (dollars in thousands).

New TDRs

Post-Modification Amortized Cost by Type of Modification

TDRs Modified Within the PreviousTwelve Months That Have

Subsequently Defaulted

Number of Contracts

Rate Reduction Structure Other Total

Number of Contracts Amortized Cost

Three Months Ended June 30, 2021 Owner occupied commercial real estate 1 $ — $ 543 $ — $ 543 — $ — Income producing commercial real estate 1 — — 378 378 — — Commercial & industrial 2 — 365 — 365 — — Commercial construction — — — — — — — Equipment financing 8 — 326 — 326 5 138

Total commercial 12 — 1,234 378 1,612 5 138 Residential mortgage 5 — 322 — 322 — — HELOC — — — — — 1 49 Residential construction — — — — — — — Consumer — — — — — — —

Total loans 17 $ — $ 1,556 $ 378 $ 1,934 6 $ 187

Six Months Ended June 30, 2021Owner occupied commercial real estate 1 $ — $ 543 $ — $ 543 — $ — Income producing commercial real estate 3 — — 1,697 1,697 — — Commercial & industrial 4 — 365 103 468 1 11 Commercial construction 1 — 309 — 309 — — Equipment financing 36 — 2,462 — 2,462 8 200

Total commercial 45 — 3,679 1,800 5,479 9 211 Residential mortgage 6 — 391 — 391 3 413 HELOC — — — — — 1 49 Residential construction — — — — — — — Consumer — — — — — — —

Total loans 51 $ — $ 4,070 $ 1,800 $ 5,870 13 $ 673

Three Months Ended June 30, 2020 Owner occupied commercial real estate 2 $ — $ — $ 546 $ 546 — $ — Income producing commercial real estate — — — — — 1 5,998 Commercial & industrial 1 — — 15 15 1 627 Commercial construction 1 — 255 — 255 — — Equipment financing 129 — 3,471 — 3,471 6 310

Total commercial 133 — 3,726 561 4,287 8 6,935 Residential mortgage 6 — 644 — 644 — — HELOC — — — — — — — Residential construction — — — — — — — Consumer 1 — — 7 7 — —

Total loans 140 $ — $ 4,370 $ 568 $ 4,938 8 $ 6,935

Six Months Ended June 30, 2020Owner occupied commercial real estate 3 $ — $ — $ 1,536 $ 1,536 — $ — Income producing commercial real estate 3 — 67 165 232 1 5,998 Commercial & industrial 1 — — 15 15 2 633 Commercial construction 1 — 255 — 255 — — Equipment financing 136 — 3,905 — 3,905 6 310

Total commercial 144 — 4,227 1,716 5,943 9 6,941 Residential mortgage 11 — 922 — 922 — — HELOC — — — — — — — Residential construction — — — — — — — Consumer 3 — — 18 18 1 3

Total loans 158 $ — $ 5,149 $ 1,734 $ 6,883 10 $ 6,944

19


Allowance for Credit LossesThe ACL for loans represents management’s estimate of life of loan credit losses in the portfolio as of the end of the period. The ACL related to unfundedcommitments is included in other liabilities in the consolidated balance sheet.The following table presents the balance and activity in the ACL by portfolio segment for the periods indicated (in thousands).

Three Months Ended June 30,2021 2020

BeginningBalance Charge-Offs Recoveries

(Release)Provision

EndingBalance

BeginningBalance Charge-Offs Recoveries

(Release)Provision

EndingBalance

Owner occupied commercialreal estate $ 19,282 $ (1) $ 156 $ (2,145) $ 17,292 $ 11,000 $ — $ 466 $ 3,126 $ 14,592 Income producingcommercial real estate 34,911 (52) 213 (4,105) 30,967 16,584 (4,589) 41 9,663 21,699 Commercial & industrial 21,750 (857) 797 (5,276) 16,414 10,831 (254) 291 (2,279) 8,589 Commercial construction 10,572 (46) 339 (1,685) 9,180 9,556 (239) 117 5,080 14,514 Equipment financing 17,200 (1,188) 887 1,201 18,100 14,738 (2,085) 420 7,232 20,305 Residential mortgage 14,580 — 194 (3,809) 10,965 11,063 (50) 56 1,757 12,826 HELOC 6,880 (34) 146 (635) 6,357 6,887 (98) 196 1,702 8,687 Residential construction 1,362 — 33 523 1,918 816 (32) 37 1,176 1,997 Consumer 329 (353) 222 225 423 430 (712) 286 456 460

ACL - loans 126,866 (2,531) 2,987 (15,706) 111,616 81,905 (8,059) 1,910 27,913 103,669 ACL - unfundedcommitments 8,726 — — 2,118 10,844 6,470 — — 5,630 12,100

Total ACL $ 135,592 $ (2,531) $ 2,987 $ (13,588) $ 122,460 $ 88,375 $ (8,059) $ 1,910 $ 33,543 $ 115,769

Six Months Ended June 30,2021 2020

BeginningBalance

Charge-Offs Recoveries

(Release)Provision

EndingBalance

Dec. 31,2019

BalanceAdoption of

CECLBeginningBalance

Charge-Offs Recoveries

(Release)Provision

EndingBalance

Owner occupiedcommercial real estate $ 20,673 $ (1) $ 396 $ (3,776) $ 17,292 $ 11,404 $ (1,616) $ 9,788 $ (6) $ 1,500 $ 3,310 $ 14,592 Income producingcommercial real estate 41,737 (1,059) 229 (9,940) 30,967 12,306 (30) 12,276 (5,000) 182 14,241 21,699 Commercial & industrial 22,019 (3,751) 6,444 (8,298) 16,414 5,266 4,012 9,278 (7,815) 667 6,459 8,589 Commercial construction 10,952 (224) 495 (2,043) 9,180 9,668 (2,583) 7,085 (239) 258 7,410 14,514 Equipment financing 16,820 (3,246) 1,434 3,092 18,100 7,384 5,871 13,255 (3,948) 776 10,222 20,305 Residential mortgage 15,341 (215) 317 (4,478) 10,965 8,081 1,569 9,650 (334) 331 3,179 12,826 HELOC 8,417 (34) 219 (2,245) 6,357 4,575 1,919 6,494 (118) 299 2,012 8,687 Residential construction 764 (10) 103 1,061 1,918 2,504 (1,771) 733 (54) 71 1,247 1,997 Consumer 287 (824) 488 472 423 901 (491) 410 (1,350) 517 883 460

ACL - loans 137,010 (9,364) 10,125 (26,155) 111,616 62,089 6,880 68,969 (18,864) 4,601 48,963 103,669 ACL - unfundedcommitments 10,558 — — 286 10,844 3,458 1,871 5,329 — — 6,771 12,100

Total ACL $ 147,568 $ (9,364) $ 10,125 $ (25,869) $ 122,460 $ 65,547 $ 8,751 $ 74,298 $ (18,864) $ 4,601 $ 55,734 $ 115,769

At both June 30, 2021 and December 31, 2020, United used a one-year reasonable and supportable forecast period. Expected credit losses were estimatedusing a regression model for each segment based on historical data from peer banks combined with a third party vendor’s economic forecast to predict thechange in credit losses. These results were then combined with a starting value that was based on United’s recent default experience, which was adjustedfor select portfolios based on expectations of future performance. At June 30, 2021, the third party vendor’s forecast, which was representative of abaseline scenario, improved significantly from December 31, 2020, including the unemployment rate which has a significant impact on our models and ledto the negative provision for loan losses in the second quarter and year-to-date. United adjusted the economic forecast by eliminating the initial spike inunemployment to account for the impact of government stimulus programs, which mitigated some of the negative impact on forecasted losses as theunemployment rate was rising and had the opposite effect as the unemployment rate was improving. In addition, United applied qualitative factors toincome producing commercial real estate, owner occupied commercial real estate, equipment finance and commercial construction portfolios tocompensate for elevated special mention and substandard loan levels.

For periods beyond the reasonable and supportable forecast period of one year, United reverted to historical credit loss information on a straight line basisover two years. For all collateral types excluding residential mortgage, United reverted to through-the-cycle

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average default rates using peer data from 2000 to 2017. For loans secured by residential mortgages, the peer data was adjusted for changes in lendingpractices designed to prevent the magnitude of losses observed during the mortgage crisis.

PPP loans were considered low risk assets due to the related 100% guarantee by the SBA and were therefore excluded from the calculation.

Note 5 – Derivatives and Hedging Activities

The table below presents the fair value of derivative financial instruments as of the dates indicated as well as their classification on the consolidated balancesheets (in thousands):

June 30, 2021 December 31, 2020

NotionalAmount

Fair ValueNotionalAmount

Fair ValueDerivative

AssetDerivativeLiability

DerivativeAsset

DerivativeLiability

Derivatives designated as hedging instruments:Cash flow hedge of subordinated debt $ 100,000 $ 5,682 $ — $ 100,000 $ 3,378 $ — Cash flow hedge of trust preferred securities 20,000 — — 20,000 — — Fair value hedge of brokered time deposits 10,000 — — 20,000 — —

Total 130,000 5,682 — 140,000 3,378 —

Derivatives not designated as hedging instruments:Customer derivative positions 1,276,926 45,358 6,758 1,329,271 72,508 17 Dealer offsets to customer derivative positions 1,276,926 451 16,094 1,329,271 1 24,614 Risk participations 61,673 3 22 48,843 28 12 Mortgage banking - loan commitment 160,535 5,191 — 253,243 10,751 — Mortgage banking - forward sales commitment 324,474 109 293 325,145 — 1,964 Bifurcated embedded derivatives 51,935 1,695 — 51,935 — 1,449 Dealer offsets to bifurcated embedded derivatives 51,935 — 3,922 51,935 — 947

Total 3,204,404 52,807 27,089 3,389,643 83,288 29,003

Total derivatives $ 3,334,404 $ 58,489 $ 27,089 $ 3,529,643 $ 86,666 $ 29,003

Total gross derivative instruments $ 58,489 $ 27,089 $ 86,666 $ 29,003 Less: Amounts subject to master netting agreements (480) (480) (114) (114)Less: Cash collateral received/pledged (5,827) (20,295) (3,200) (27,092)Net amount $ 52,182 $ 6,314 $ 83,352 $ 1,797

United clears certain derivatives centrally through the CME. CME rules legally characterize variation margin payments for centrally cleared derivatives assettlements of the derivatives’ exposure rather than as collateral. As a result, the variation margin payment and the related derivative instruments areconsidered a single unit of account for accounting purposes. Variation margin, as determined by the CME, is settled daily. As a result, derivative contractsthat clear through the CME have an estimated fair value of zero.

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Hedging DerivativesCash Flow Hedges of Interest Rate Risk United enters into cash flow hedges to mitigate exposure to the variability of future cash flows or other forecasted transactions. As of June 30, 2021 andDecember 31, 2020 United utilized interest rate caps and swaps to hedge the variability of cash flows due to changes in interest rates on certain of itsvariable-rate subordinated debt and trust preferred securities. United considers these derivatives to be highly effective at achieving offsetting changes incash flows attributable to changes in interest rates. Therefore, changes in the fair value of these derivative instruments are recognized in OCI. Gains andlosses related to changes in fair value are reclassified into earnings in the periods the hedged forecasted transactions occur. Losses representingamortization of the premium recorded on cash flow hedges, which is a component excluded from the assessment of effectiveness, are recognized inearnings on a straight-line basis in the same caption as the hedged item over the term of the hedge. Over the next twelve months, United expects toreclassify $595,000 of losses from AOCI into earnings related to these agreements.

Fair Value Hedges of Interest Rate Risk United is exposed to changes in the fair value of certain of its fixed-rate obligations due to changes in interest rates. United uses interest rate derivatives tomanage its exposure to changes in fair value on these instruments attributable to changes in interest rates. For derivatives designated and that qualify as fairvalue hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized inearnings. United includes the gain or loss on the hedged items in the same income statement line item as the offsetting loss or gain on the relatedderivatives.

At June 30, 2021 and December 31, 2020, United had interest rate swaps that were designated as fair value hedges of fixed-rate brokered time deposits.The swaps involved the receipt of fixed-rate amounts from a counterparty in exchange for United making variable rate payments over the life of theagreements.

In certain cases, the estate of deceased brokered certificate of deposit holders may put the certificate of deposit back to United at par upon the death of theholder. When these events (estate puts) occur, a gain or loss is recognized for the difference between the fair value and the par amount of the deposits putback. The change in the fair value of brokered time deposits that are being hedged in fair value hedging relationships reported in the table above includesgains and losses from estate puts.

The table below presents the effect of derivatives in hedging relationships, all of which are interest rate contracts, on the consolidated statement of incomefor the periods indicated (in thousands).


Total interest expense presented in the consolidated statements of income $ (7,433) $ (14,301) $ (16,911) $ (32,242)Effect of hedging relationships on interest expense:Net income recognized on fair value hedges 46 213 124 218 Net expense recognized on cash flow hedges (147) (67) (291) (67)

Includes $118,000 and $234,000 of premium amortization expense excluded from the assessment of hedge effectiveness for the three and six months ended June 30,2021, respectively. Includes $92,000 of premium amortization expense excluded from the assessment of hedge effectiveness for the three and six months ended June 30,2020.

The table below presents the carrying amount of hedged fixed-rate brokered time deposits and cumulative fair value hedging adjustments included in thecarrying amount of the hedged liability for the periods presented (in thousands).

June 30, 2021 December 31, 2020

Balance Sheet LocationCarrying amount of Assets

(Liabilities)Hedge Accounting Basis

AdjustmentCarrying amount of Assets

(Liabilities)Hedge Accounting Basis

AdjustmentDeposits $ (10,103) $ (112) $ (20,216) $ (235)

Derivatives Not Designated as Hedging Instruments Customer derivative positions include swaps, caps, and collars between United and certain commercial loan customers with offsetting positions to dealersunder a back-to-back program. In addition, United occasionally enters into credit risk participation agreements with counterparty banks to accept or transfera portion of the credit risk related to interest rate swaps. The agreements, which are typically executed in conjunction with a participation in a loan with thesame customer, allow customers to execute an interest rate swap with one bank while allowing for the distribution of the credit risk among participatingmembers.

United also has three interest rate swap contracts that are not designated as hedging instruments but are economic hedges of market-linked brokeredcertificates of deposit. The market-linked brokered certificates of deposit contain embedded derivatives that are

(1)

(1)

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bifurcated from the host instruments and are marked to market through earnings. The fair value marks on the market-linked swaps and the bifurcatedembedded derivatives tend to move in opposite directions with changes in 90-day LIBOR and therefore provide an economic hedge. In addition, United originates certain residential mortgage loans with the intention of selling these loans. Between the time United enters into an interest-rate lock commitment to originate a residential mortgage loan that is to be held for sale and the time the loan is funded and eventually sold, United issubject to the risk of variability in market prices. United enters into forward sale agreements to mitigate risk and to protect the expected gain on theeventual loan sale. The commitments to originate residential mortgage loans and forward loan sales commitments are freestanding derivative instruments.Fair value adjustments on these derivative instruments are recorded within mortgage loan gains and other related fee income in the consolidated statementsof income.

The table below presents the gains and losses recognized in income on derivatives not designated as hedging instruments for the periods indicated (inthousands).

Location of Gain (Loss)Recognized in Income on

Derivatives

Amount of Gain (Loss) Recognized in Income on DerivativesThree Months Ended


June 30, 2021 2020 2021 2020Customer derivatives and dealer offsets Other noninterest income $ 162 $ 1,168 $ 2,059 $ 2,592 Bifurcated embedded derivatives and dealer offsets Other noninterest income (42) (28) 417 (223)Mortgage banking derivatives Mortgage loan revenue (3,494) 929 342 100 Risk participations Other noninterest income 98 14 (107) (3) $ (3,276) $ 2,083 $ 2,711 $ 2,466

Credit-Risk-Related Contingent Features United manages its credit exposure on derivatives transactions by entering into a bilateral credit support agreement with each non-customer counterparty.The credit support agreements require collateralization of exposures beyond specified minimum threshold amounts. The details of these agreements,including the minimum thresholds, vary by counterparty. United’s agreements with each of its derivative counterparties provide that if either party defaults on any of its indebtedness, then it could also be declaredin default on its derivative obligations. The agreements with derivative counterparties also include provisions that if not met, could result in United beingdeclared in default. United has agreements with certain of its derivative counterparties that provide that if United fails to maintain its status as a well-capitalized institution or is subject to a prompt corrective action directive, the counterparty could terminate the derivative positions and United would berequired to settle its obligations under the agreements. Derivatives that are centrally cleared do not have credit-risk-related features that would requireadditional collateral if United’s credit rating were downgraded.

Note 6 – Assets and Liabilities Measured at Fair Value

Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis forconsidering market participant assumptions in fair value measurements, United uses a fair value hierarchy that distinguishes between market participantassumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 ofthe hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of thehierarchy). United has processes in place to review the significant valuation inputs and to reassess how the instruments are classified in the valuationframework.

Fair Value Hierarchy

Level 1 Valuation is based upon quoted prices (unadjusted) in active markets for identical assets or liabilities that United has the ability to access.

Level 2 Valuation is based upon quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the assetor liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.

Level 3 Valuation is generated from model-based techniques that use at least one significant assumption based on unobservable inputs for the assetor liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity.

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In instances when the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fairvalue hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in itsentirety. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factorsspecific to the asset or liability.

The following is a description of the valuation methodologies used for assets and liabilities recorded at fair value.

Investment SecuritiesAFS debt securities and equity securities with readily determinable fair values are recorded at fair value on a recurring basis. Fair value measurement isbased upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-basedvaluation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors suchas credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securitiesthat are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include MBS issued by GSEs,municipal bonds, corporate debt securities, asset-backed securities and supranational entity securities and are valued based on observable inputs thatinclude: quoted market prices for similar assets, quoted market prices that are not in an active market, or other inputs that are observable in the market andcan be corroborated by observable market data for substantially the full term of the securities. Securities classified as Level 3 include those traded in lessliquid markets and are valued based on estimates obtained from broker-dealers that are not directly observable or models which incorporate unobservableinputs. Deferred Compensation Plan Assets and LiabilitiesIncluded in other assets in the consolidated balance sheet are assets related to employee deferred compensation plans. The assets associated with theseplans are invested in mutual funds and classified as Level 1. Deferred compensation liabilities, also classified as Level 1, are carried at the fair value of theobligation to the employee, which mirrors the fair value of the invested assets and is included in other liabilities in the consolidated balance sheet. Mortgage Loans Held for SaleUnited has elected the fair value option for most of its newly originated mortgage loans held for sale in order to reduce certain timing differences and bettermatch changes in fair values of the loans with changes in the value of derivative instruments used to economically hedge them. The fair value of mortgageloans held for sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan, and are classified as Level 2. Derivative Financial InstrumentsUnited uses derivatives to manage interest rate risk. The valuation of these instruments is typically determined using widely accepted valuation techniquesincluding discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives,including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interestrate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variablecash payments. The variable cash payments are based on an expectation of future interest rates (forward curves) derived from observable market interestrate curves. United also uses best effort and mandatory delivery forward loan sale commitments to hedge risk in its mortgage lending business. United incorporates CVAs as necessary to appropriately reflect the respective counterparty’s nonperformance risk in the fair value measurements. Inadjusting the fair value of its derivative contracts for the effect of nonperformance risk, United has considered the effect of netting and any applicable creditenhancements, such as collateral postings, thresholds and guarantees. Management has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy. However, the CVAsassociated with these derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and itscounterparties. Generally, management’s assessment of the significance of the CVAs has indicated that they are not a significant input to the overallvaluation of the derivatives. In cases where management’s assessment indicates that the CVA is a significant input, the related derivative is disclosed as aLevel 3 value.

Other derivatives classified as Level 3 include structured derivatives for which broker quotes, used as a key valuation input, were not observable. Riskparticipation agreements are classified as Level 3 instruments due to the incorporation of significant Level 3 inputs used to evaluate the probability offunding and the likelihood of customer default. Interest rate lock commitments, which relate to mortgage loan commitments, are categorized as Level 3instruments as the fair value of these instruments is based on unobservable inputs for commitments that United does not expect to fund.

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Servicing Rights for Residential and SBA/USDA LoansUnited recognizes servicing rights upon the sale of residential and SBA/USDA loans sold with servicing retained. Management has elected to carry theseassets at fair value. Given the nature of these assets, the key valuation inputs are unobservable and management classifies these assets as Level 3. Assets and Liabilities Measured at Fair Value on a Recurring BasisThe table below presents United’s assets and liabilities measured at fair value on a recurring basis as of the dates indicated, aggregated by the level in thefair value hierarchy within which those measurements fall (in thousands).

June 30, 2021 Level 1 Level 2 Level 3 TotalAssets:

AFS debt securities: U.S. Treasuries $ 142,080 $ — $ — $ 142,080 U.S. Government agencies & GSEs — 152,624 — 152,624 State and political subdivisions — 289,346 — 289,346 Residential MBS — 1,977,045 — 1,977,045 Commercial MBS — 708,208 — 708,208 Corporate bonds — 150,104 1,707 151,811 Asset-backed securities — 654,667 — 654,667

Equity securities with readily available fair values 1,289 1,268 — 2,557 Mortgage loans held for sale — 98,194 — 98,194 Deferred compensation plan assets 11,008 — — 11,008 Servicing rights for SBA/USDA loans — — 6,115 6,115 Residential mortgage servicing rights — — 21,568 21,568 Derivative financial instruments — 51,600 6,889 58,489

Total assets $ 154,377 $ 4,083,056 $ 36,279 $ 4,273,712

Liabilities:Deferred compensation plan liability $ 11,031 $ — $ — $ 11,031 Derivative financial instruments — 23,145 3,944 27,089

Total liabilities $ 11,031 $ 23,145 $ 3,944 $ 38,120

December 31, 2020 Level 1 Level 2 Level 3 TotalAssets:

AFS debt securities: U.S. Treasuries $ 128,072 $ — $ — $ 128,072 U.S. Government agencies & GSEs — 152,972 — 152,972 State and political subdivisions — 274,472 — 274,472 Residential MBS — 1,485,585 — 1,485,585 Commercial MBS — 549,131 — 549,131 Corporate bonds — 70,017 1,750 71,767 Asset-backed securities — 562,722 — 562,722

Equity securities with readily available fair values 774 913 — 1,687 Mortgage loans held for sale — 105,433 — 105,433 Deferred compensation plan assets 9,584 — — 9,584 Servicing rights for SBA/USDA loans — — 6,462 6,462 Residential mortgage servicing rights — — 16,216 16,216 Derivative financial instruments — 75,887 10,779 86,666

Total assets $ 138,430 $ 3,277,132 $ 35,207 $ 3,450,769

Liabilities:Deferred compensation plan liability $ 9,590 $ — $ — $ 9,590 Derivative financial instruments — 26,595 2,408 29,003

Total liabilities $ 9,590 $ 26,595 $ 2,408 $ 38,593

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The following table shows a reconciliation of the beginning and ending balances for the periods indicated for assets measured at fair value on a recurringbasis using significant unobservable inputs that are classified as Level 3 values (in thousands).

2021 2020

DerivativeAssets

DerivativeLiabilities

SBA/USDAloan servicing

rights

Residentialmortgageservicing

rightsCorporate

BondsDerivative

AssetsDerivativeLiabilities

SBA/USDAloan servicing

rights

Residentialmortgageservicing

rightsCorporate

BondsThree Months Ended June 30, Balance at beginning ofperiod $ 8,308 $ 4,606 $ 6,226 $ 20,728 $ 1,750 $ 7,361 $ 2,717 $ 6,290 $ 11,059 $ —

Additions — 97 610 3,792 — 7 — 303 3,217 1,000 Transfers into Level 3 — — — — — 583 — — — — Sales and settlements — — (453) (1,426) — — — (34) (682) — Amounts included inOCI — — — — (43) — — — — — Amounts included inearnings - fair valueadjustments (1,419) (759) (268) (1,526) — 4,156 (148) (525) (1,102) —

Balance at end of period $ 6,889 $ 3,944 $ 6,115 $ 21,568 $ 1,707 $ 12,107 $ 2,569 $ 6,034 $ 12,492 $ 1,000

Six Months Ended June 30,Balance at beginning ofperiod $ 10,779 $ 2,408 $ 6,462 $ 16,216 $ 1,750 $ 7,238 $ 8,559 $ 6,794 $ 13,565 $ 998 Additions 175 97 839 6,993 — 7 — 398 5,332 1,000 Transfers into Level 3 — — — — — 583 — — — — Sales and settlements — — (644) (2,555) — — — (341) (1,175) (1,000)Amounts included inOCI — — — (43) — — — — 2 Amounts included inearnings - fair valueadjustments (4,065) 1,439 (542) 914 — 4,279 (5,990) (817) (5,230) —

Balance at end of period $ 6,889 $ 3,944 $ 6,115 $ 21,568 $ 1,707 $ 12,107 $ 2,569 $ 6,034 $ 12,492 $ 1,000

The following table presents quantitative information about significant Level 3 inputs for fair value on a recurring basis as of the dates indicated.

Level 3 Assets and LiabilitiesValuationTechnique

Significant UnobservableInputs June 30, 2021 December 31, 2020

RangeWeightedAverage Range

WeightedAverage

SBA/USDA loan servicing rights Discounted cashflow

Discount rate0.0% - 31.1% 9.3 % 1.6% - 44.1% 8.9 %

Prepayment rate 3.0 - 34.3 17.9 2.7 - 33.6 17.8 Residential mortgage servicingrights

Discounted cashflow

Discount rate10.0 - 11.0 10.0 10.0 - 11.0 10.0

Prepayment rate 10.3 - 18.0 13.7 8.7 - 19.5 17.7 Corporate bonds Indicative bid

provided by abroker

Multiple factors, includingbut not limited to, currentoperations, financialcondition, cash flows, andsimilar financing transactionsexecuted in the market N/A N/A

Discounted cashflow

Discount rate6.7 - 6.9 6.8

Derivative assets - mortgage Internal model Pull through rate 49.8 - 100 85.2 65.6 - 100 83.9 Derivative assets and liabilities -other

Dealer priced Dealer pricedN/A N/A N/A N/A

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Fair Value OptionUnited records mortgage loans held for sale at fair value under the fair value option. Interest income on these loans is calculated based on the note rate ofthe loan and is recorded in interest revenue. The following tables present the fair value and outstanding principal balance of these loans, as well as the gainor loss recognized resulting from the change in fair value for the periods indicated (in thousands).

Mortgage Loans Held for SaleJune 30, 2021 December 31, 2020

Outstanding principal balance $ 94,229 $ 99,746 Fair value 98,194 105,433

Gain (Loss) Recognized on Mortgage Loans Held for Sale

LocationThree Months Ended


June 30,2020 2019 2021 2020

Mortgage loan gains and other related fees $ 521 $ 1,546 $ (1,721) $ 3,271

Changes in fair value were mostly offset by hedging activities. An immaterial portion of these amounts was attributable to changes in instrument-specificcredit risk.

Assets and Liabilities Measured at Fair Value on a Nonrecurring BasisUnited may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis. These adjustments to fair value usually resultfrom the application of the lower of the amortized cost or fair value accounting or write-downs of individual assets due to impairment. The following tablepresents the fair value hierarchy and carrying value of assets that were still held as of June 30, 2021 and December 31, 2020, for which a nonrecurring fairvalue adjustment was recorded during the year-to-date periods presented (in thousands).

Level 1 Level 2 Level 3 TotalJune 30, 2021 Loans $ — $ — $ 3,341 $ 3,341

December 31, 2020Loans $ — $ — $ 29,404 $ 29,404

Loans that are reported above as being measured at fair value on a nonrecurring basis are generally impaired loans that have either been partially chargedoff or have specific reserves assigned to them. Nonaccrual loans that are collateral dependent are generally written down to net realizable value, whichreflects fair value less the estimated costs to sell. Specific reserves that are established based on appraised value of collateral are considered nonrecurringfair value adjustments as well. When the fair value of the collateral is based on an observable market price or a current appraised value, United records theimpaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is furtherimpaired below the appraised value and there is no observable market price, United records the impaired loan as nonrecurring Level 3.

Assets and Liabilities Not Measured at Fair Value For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity,have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates reported bookvalue, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting theexpected cash flows using an estimated current market interest rate for the financial instrument. For off-balance sheet derivative instruments, fair value isestimated as the amount that United would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains orlosses on open contracts. Cash and cash equivalents and repurchase agreements have short maturities and therefore the carrying value approximates fair value. Due to the short-termsettlement of accrued interest receivable and payable, the carrying amount closely approximates fair value. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Theseestimates do not reflect the premium or discount on any particular financial instrument that could result from the sale of United’s entire holdings. Allestimates are inherently subjective in nature. Changes in assumptions could significantly affect the estimates.

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Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated futurebusiness and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not consideredfinancial instruments include the mortgage banking operation, brokerage network, deferred income taxes, premises and equipment and goodwill. Inaddition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have notbeen considered in the estimates. Off-balance sheet instruments (commitments to extend credit and standby letters of credit) for which draws can be reasonably predicted are generally short-term in maturity and are priced at variable rates. Therefore, the estimated fair value associated with these instruments is immaterial.

The carrying amount and fair values as of the dates indicated for other financial instruments that are not measured at fair value on a recurring basis are asfollows (in thousands).

Fair Value LevelCarrying Amount Level 1 Level 2 Level 3 Total

June 30, 2021 Assets:

HTM debt securities $ 852,404 $ — $ 861,488 $ — $ 861,488 Loans and leases, net 11,279,130 — — 11,263,533 11,263,533

Liabilities:Deposits 16,327,767 — 16,327,024 — 16,327,024 Long-term debt 261,919 — — 280,049 280,049

December 31, 2020Assets:

HTM debt securities $ 420,361 $ — $ 437,193 $ — $ 437,193 Loans and leases, net 11,233,805 — — 11,209,717 11,209,717

Liabilities:Deposits 15,232,358 — 15,232,274 — 15,232,274 Long-term debt 326,956 — — 336,763 336,763

Note 7 – Common Stock

In the second quarter of 2021, United amended its articles of incorporation to increase the number of authorized shares of common stock from 150 millionto 200 million.

In November of 2020, United’s Board of Directors re-authorized a common stock repurchase program to permit the repurchase of up to $50 million of itscommon stock. The program is scheduled to expire on the earlier of the repurchase of common stock having an aggregate purchase price of $50 million orDecember 31, 2021. During the three and six months ended June 30, 2021, 150,000 shares were repurchased. No shares were repurchased during the threemonths ended June 30, 2020. During the six months ended June 30, 2020, 826,482 shares were repurchased. As of June 30, 2021, United had remainingauthorization to repurchase up to $44.9 million of outstanding common stock under the program.

Note 8 – Stock-Based Compensation United has an equity compensation plan that allows for grants of various share-based compensation. The general terms of the plan include a vesting period(usually four years) with an exercisable period not to exceed ten years. Certain restricted stock unit awards provide for accelerated vesting if there is achange in control (as defined in the plan document). As of June 30, 2021, 884,343 additional awards could be granted under the plan.

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The table below presents restricted stock unit activity for the six months ended June 30, 2021.

Restricted Stock Unit Awards Shares

Weighted-Average Grant-Date Fair Value

AggregateIntrinsic

Value ($000)Outstanding at December 31, 2020 893,431 $ 23.75 Granted 71,378 30.94 Vested (119,680) 29.19 $ 4,008 Cancelled (47,231) 24.96 Outstanding at June 30, 2021 797,898 23.51 25,541

Compensation expense for restricted stock units and performance stock units without market conditions is based on the market value of United’s commonstock on the date of grant. Compensation expense for performance stock units with market conditions is based on the grant date per share fair market value,which was estimated using the Monte Carlo Simulation valuation model. United recognizes the impact of forfeitures as they occur. The value of restrictedstock unit and performance stock unit awards is amortized into expense over the service period.

For the six months ended June 30, 2021 and 2020, expense of $2.91 million and $4.04 million, respectively, was recognized related to restricted stock unitand performance stock unit awards granted to United employees, which was included in salaries and employee benefits expense. In addition, for the sixmonths ended June 30, 2021 and 2020, $235,000 and $217,000, respectively, was recognized in other expense for restricted stock unit awards granted tomembers of United’s Board of Directors.

A deferred income tax benefit related to stock-based compensation expense of $802,000 and $1.09 million was included in the determination of income taxexpense for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, there was $12.2 million of unrecognized expense related tonon-vested restricted stock unit and performance stock unit awards granted under the plan. That cost is expected to be recognized over a weighted-averageperiod of 2.3 years.

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Note 9 – Reclassifications Out of AOCI

The following table presents the details regarding amounts reclassified out of AOCI for the periods indicated (in thousands). Amounts shown inparentheses reduce earnings.

Details about AOCI Components


Six Months EndedJune 30, Affected Line Item in the Statement Where

Net Income is Presented2021 2020 2021 2020Realized gains on AFS securities:

$ 41 $ — $ 41 $ — Securities gains, net (14) — (14) — Income tax expense $ 27 $ — $ 27 $ — Net of tax

Amortization of losses included in net income on AFS securities transferred to HTM: $ — $ (96) $ — $ (179) Investment securities interest revenue — 23 — 43 Income tax benefit $ — $ (73) $ — $ (136) Net of tax

Reclassifications related to derivative financial instruments accounted for as cash flow hedges:Interest rate contracts $ (147) $ (67) $ (291) $ (67) Long-term debt interest expense

37 17 74 17 Income tax benefit $ (110) $ (50) $ (217) $ (50) Net of tax

Reclassifications related to defined benefit pension plan activity:Prior service cost $ (117) $ (132) $ (234) $ (265) Salaries and employee benefits expenseActuarial losses (144) (82) (288) (163) Other expense

(261) (214) (522) (428) Total before tax 67 55 134 109 Income tax benefit $ (194) $ (159) $ (388) $ (319) Net of tax

Total reclassifications for the period $ (277) $ (282) $ (578) $ (505) Net of tax

Note 10 – Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data).


Six Months EndedJune 30,

2021 2020 2021 2020Net income $ 70,260 $ 25,096 $ 143,966 $ 56,980 Dividends on preferred stock (1,719) — (3,438) — Undistributed earnings allocated to participating securities (432) (183) (894) (426)Net income available to common shareholders $ 68,109 $ 24,913 $ 139,634 $ 56,554

Weighted average shares outstanding:Basic 87,289 78,920 87,306 79,130 Effect of dilutive securities:Restricted stock units 132 4 137 56

Diluted 87,421 78,924 87,443 79,186

Net income per common share:Basic $ 0.78 $ 0.32 $ 1.60 $ 0.71

Diluted $ 0.78 $ 0.32 $ 1.60 $ 0.71

30


At June 30, 2021, United had no potentially dilutive instruments outstanding that were not included in the above analysis. At June 30, 2020, United hadpotentially dilutive instruments outstanding in the form of 154,795 shares of common stock issuable upon vesting of restrictive stock units.

Note 11 – Regulatory Matters

As of June 30, 2021, United and the Bank were categorized as well-capitalized under the regulatory framework for prompt corrective action in effect atsuch time. To be categorized as well-capitalized at June 30, 2021, United and the Bank must have exceeded the well-capitalized guideline ratios in effect atsuch time, as set forth in the table below, and have met certain other requirements. Management believes that United and the Bank exceeded all well-capitalized requirements at June 30, 2021, and there have been no conditions or events since quarter-end that would change the status of well-capitalized.

Regulatory capital ratios at June 30, 2021 and December 31, 2020, along with the minimum amounts required for capital adequacy purposes and to be well-capitalized under prompt corrective action provisions in effect at such times are presented below for United and the Bank (dollars in thousands):

United Community Banks, Inc.(Consolidated) United Community Bank

Minimum Well-

CapitalizedJune 30,

2021December 31,

2020June 30,

2021December 31,

2020Risk-based ratios:

CET1 capital 4.5 % 6.5 % 12.59 % 12.31 % 13.21 % 13.31 %Tier 1 capital 6.0 8.0 13.34 13.10 13.21 13.31 Total capital 8.0 10.0 15.09 15.15 14.03 14.28

Leverage ratio 4.0 5.0 9.26 9.28 9.16 9.42

CET1 capital $ 1,604,725 $ 1,506,750 $ 1,679,004 $ 1,625,292 Tier 1 capital 1,701,147 1,603,172 1,679,004 1,625,292 Total capital 1,924,680 1,854,368 1,782,537 1,743,045 Risk-weighted assets 12,750,755 12,240,440 12,705,960 12,207,940 Average total assets for the leverage ratio 18,369,878 17,276,853 18,334,952 17,246,878

As of June 30, 2021 and December 31, 2020 the additional capital conservation buffer in effect was 2.50%

Note 12 – Commitments and Contingencies United is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. Thesefinancial instruments include commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk inexcess of the amount recognized in the balance sheet. The contract amounts of these instruments reflect the extent of involvement United has in particularclasses of financial instruments. The exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitmentsto extend credit and letters of credit written is represented by the contractual amount of these instruments. United uses the same credit policies in makingcommitments and conditional obligations as it uses for underwriting on-balance sheet instruments. In most cases, collateral or other security is required tosupport financial instruments with credit risk. The following table summarizes the contractual amount of off-balance sheet instruments as of the dates indicated (in thousands).

June 30, 2021 December 31, 2020Financial instruments whose contract amounts represent credit risk:

Commitments to extend credit $ 3,259,470 $ 3,052,657 Letters of credit 27,674 31,748

United holds minor investments in certain limited partnerships for Community Reinvestment Act purposes. As of June 30, 2021, United had committed tofund an additional $8.43 million related to future capital calls that are not reflected in the consolidated balance sheet. United, in the normal course of business, is subject to various pending and threatened lawsuits in which claims for monetary damages areasserted. Although it is not possible to predict the outcome of these lawsuits, or the range of any possible loss, management, after

(1)

(1)

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consultation with legal counsel, does not anticipate that the ultimate aggregate liability, if any, arising from these lawsuits will have a material adverseeffect on United’s financial position or results of operations. Note 13 – Acquisitions

Subsequent to quarter-end, on July 6, 2021, United completed the acquisition of FinTrust Capital Partners, LLC, and its operating subsidiaries, FinTrustCapital Advisors, LLC, FinTrust Capital Benefit Group, LLC and FinTrust Brokerage Services, LLC, collectively referred to as “FinTrust”. FinTrust is aninvestment advisory firm headquartered in Greenville, South Carolina, with additional locations in Anderson, South Carolina, and Athens and Macon,Georgia. The firm provides wealth and investment management services to individuals and institutions within its markets. As of June 30, 2021, FinTrusthad assets under management of $2.09 billion across its advisory, retirement planning and brokerage businesses.

Under the terms of the merger agreement, FinTrust shareholders received $22.0 million in total consideration, of which $4.40 million was United commonstock, $9.90 million was cash and $7.70 million was contingent consideration. United issued 132,299 shares of common stock to FinTrust shareholders inthe acquisition. The acquisition will be accounted for as a business combination. Due to the timing of the acquisition, United is currently in the process ofcompleting the purchase accounting and has not made all of the remaining required disclosures, such as the fair value of assets acquired and supplementalpro forma information, which will be disclosed in subsequent filings.

On May 27, 2021, United announced an agreement to acquire Aquesta Financial Holdings, Inc. and its wholly-owned subsidiary, Aquesta Bank,collectively referred to as “Aquesta”. Aquesta is headquartered in Cornelius, North Carolina and operates a network of nine branches primarily located inthe Charlotte metropolitan area in addition to locations in Wilmington and Raleigh, North Carolina, as well as Greenville and Charleston, South Carolina.As of June 30, 2021, Aquesta reported total assets of $736 million, total loans of $524 million and total deposits of $641 million. The merger, which issubject to regulatory approval, the approval of Aquesta shareholders, and other customary conditions, is expected to close in the fourth quarter of 2021.

Subsequent to quarter-end, on July 14, 2021, United announced an agreement to acquire Reliant Bancorp, Inc. and its wholly-owned subsidiary, ReliantBank, collectively referred to as “Reliant”. Reliant is headquartered in Brentwood, Tennessee, a suburb of Nashville, Tennessee and operates a 25 branchnetwork in Tennessee, located primarily in the Nashville area, as well as branches in Clarksville and Chattanooga. It also has a manufactured housingfinance group based in Knoxville. As of June 30, 2021, Reliant reported total assets of $3.10 billion, total loans of $2.32 billion, and total deposits of $2.63billion. The merger, which is subject to regulatory approval, the approval of Reliant shareholders, and other customary conditions, is expected to close inthe first quarter of 2022.

Note 14 - Subsequent Events

Effective July 1, 2021, the Bank moved its headquarters from Blairsville, Georgia to Greenville, South Carolina and became a South Carolina state-chartered bank subject to examination and reporting requirements of the South Carolina Board of Financial Institutions. Prior to that date, the Bank was aGeorgia state-chartered bank subject to examination and reporting requirements of the Georgia Department of Banking and Finance. Also effective July 1,2021, the Holding Company elected to become a financial holding company, which allows for engagement in a broader range of financial activities.

During the third quarter of 2021, through August 5, 2021, United repurchased 309,599 shares of common stock for $9.00 million in accordance with itscommon stock repurchase program.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion of our financial condition at June 30, 2021 and December 31, 2020 and our results of operations for the three and six monthsended June 30, 2021 and 2020. The purpose of this discussion is to focus on information about our financial condition and results of operations which isnot otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition.The following discussion and analysis should be read along with our consolidated financial statements and related notes included in Part I - Item 1 of thisReport, “Cautionary Note Regarding Forward-Looking Statements” and the risk factors discussed in our 2020 10-K, and the other reports we have filedwith the SEC after we filed the 2020 10-K.

Unless the context otherwise requires, the terms “we,” “our,” “us” refer to United on a consolidated basis. References to the Holding Company refer toUnited Community Banks, Inc. on an unconsolidated basis. Overview We offer a wide array of commercial and consumer banking services and investment advisory services through a 162 branch network throughout Georgia,South Carolina, North Carolina, Tennessee and Florida. We have grown organically as well as through strategic acquisitions. At June 30, 2021, we hadconsolidated total assets of $18.9 billion and 2,440 full-time equivalent employees.

Recent Developments

Mergers and Acquisitions• On July 1, 2020, we acquired Three Shores including its wholly-owned banking subsidiary, Seaside, headquartered in Orlando, Florida. Seaside

was a premier commercial lender with a strong wealth management platform and operated a 14-branch network located in key Floridametropolitan markets. We acquired $2.13 billion of assets and assumed $1.99 billion of liabilities in the acquisition.

• Subsequent to quarter-end, on July 6, 2021, we acquired FinTrust Capital Partners, LLC, and its operating subsidiaries FinTrust Capital Advisors,LLC, FinTrust Capital Benefit Group, LLC and FinTrust Brokerage Services, LLC, collectively referred to as “FinTrust”. FinTrust is aninvestment advisory firm headquartered in Greenville, South Carolina, with additional locations in Anderson, South Carolina, and Athens andMacon, Georgia. The firm provides wealth and investment management services to individuals and institutions within its markets, which expandsour Advisory Services division. As of June 30, 2021, FinTrust had assets under management of $2.09 billion across its advisory, retirementplanning and brokerage businesses.

• On May 27, 2021, we announced an agreement to acquire Aquesta Financial Holdings, Inc. and its wholly-owned subsidiary, Aquesta Bank,collectively referred to as “Aquesta”, which we plan to complete in October of 2021. Aquesta is headquartered in Cornelius, North Carolina. Thebank’s high-touch customer service is delivered to retail and business customers through a network of nine branches primarily located in theCharlotte metropolitan area in addition to locations in Wilmington and Raleigh, North Carolina, as well as Greenville and Charleston, SouthCarolina. As of June 30, 2021, Aquesta reported total assets of $736 million, total loans of $524 million and total deposits of $641 million.

• On July 14, 2021, we announced an agreement to acquire Reliant Bancorp, Inc. and its wholly-owned subsidiary, Reliant Bank, collectivelyreferred to as “Reliant”, which we plan to complete in the first quarter of 2022. Reliant is headquartered in Brentwood, Tennessee, a suburb ofNashville, Tennessee and operates a 25 branch network in Tennessee, located primarily in some of the Nashville area’s most attractive markets, aswell as in Clarksville and Chattanooga. It also has a manufactured housing finance group based in Knoxville. As of June 30, 2021, Reliantreported total assets of $3.10 billion, total loans of $2.32 billion, and total deposits of $2.63 billion.

COVID-19During the second quarter of 2021, as a result of the widespread distribution of COVID-19 vaccinations and reduction in COVID-19 cases nationally andwithin our markets, we substantially returned to normal retail operations by reopening the majority of our branch lobbies. We continue to monitor theimpact of the COVID-19 pandemic on our business and to offer assistance to our customers affected by its economic effects, through payment deferrals andparticipation in the CARES Act and PPP loan program. Loans with active COVID-19 payment deferrals have declined dramatically, with $17.8 millionoutstanding at June 30, 2021, a 75% reduction since December 31, 2020.

33

OtherEffective July 1, 2021, the Bank moved its headquarters from Blairsville, Georgia to Greenville, South Carolina and became a South Carolina state-chartered bank subject to examination and reporting requirements of the South Carolina Board of Financial Institutions. Prior to that, the Bank was aGeorgia state-chartered bank subject to examination and reporting requirements of the Georgia Department of Banking and Finance. Also effective July 1,2021, the Holding Company, which remains headquartered in Blairsville, Georgia, elected to become a financial holding company, which allows us toengage in a broader range of financial activities. Neither of these changes had a material impact on our operations.

Results of Operations

We reported net income and diluted earnings per common share of $70.3 million and $0.78, respectively, for the second quarter of 2021 compared to $25.1million and $0.32, respectively, for the same period in 2020. Operating net income (non-GAAP), which excludes merger-related and other charges, was$71.1 million for the second quarter of 2021, compared to $25.4 million for the same period in 2020. The increase in net income and operating net incomewas driven by increased net interest revenue and a release of provision for credit losses partly offset by a decrease in noninterest income and an increase innoninterest expense during the second quarter of 2021.

Net interest revenue increased to $138 million for the second quarter of 2021, compared to $109 million for the second quarter of 2020, due to severalfactors including loan growth, much of which resulted from the addition of PPP loans and loans acquired from Three Shores, accelerated recognition of netdeferred fees on forgiven and repaid PPP loans and a more favorable deposit mix. The net interest margin decreased to 3.19% for the three months endedJune 30, 2021 from 3.42% for the same period in 2020 primarily due to the effect of falling interest rates on our asset sensitive balance sheet and a changein the composition of interest-earning assets as we strategically increased our securities portfolio to deploy excess liquidity from strong deposit growth. We recorded a negative provision for credit losses of $13.6 million for the second quarter of 2021, compared to $33.5 million of provision expense for thesecond quarter of 2020. The negative provision in 2021 resulted from a downward adjustment to the ACL, reflecting an improved economic forecast. Theprovision for credit losses for the second quarter of 2020 reflected the expected macroeconomic effects of the COVID-19 pandemic and associated increasein charge-offs. We recognized net recoveries for the second quarter of 2021 of $456,000 compared to $6.15 million of net charge-offs for the same periodin 2020.

Noninterest income of $35.8 million for the second quarter of 2021 was down $4.40 million, or 11%, from the second quarter of 2020. Gains on sales ofmortgage loans and related fees drove most of the decrease, down $12.5 million compared to the same period of 2020. The decrease reflects the demand inthe real estate mortgage market, which, while still strong, has started to level out after the initial surge in response to falling interest rates in early 2020.This decrease was partially offset by increases in gains on sales of other loans, driven by higher sales volume of SBA/USDA and equipment financingreceivables, and wealth management fees, which reflects the addition of Three Shores’ wealth management business.

For the second quarter of 2021, noninterest expenses of $95.5 million increased $11.6 million, or 14%, compared to the same period of 2020. The increasewas primarily attributable to a $7.60 million increase in salaries and employee benefits, which was driven by several factors, including the inclusion ofThree Shores employees, higher mortgage commissions, incentives and bonus accruals as a result of strong production during the period and annual meritincreases effective in April of 2021.

For the six months ended June 30, 2021 and 2020, we reported net income of $144 million and $57.0 million, respectively, and diluted earnings percommon share of $1.60 and $0.71, respectively. Operating net income (non-GAAP) for the six months ended June 30, 2021 and 2020, of $146 million and$57.9 million, respectively, excluded merger-related charges for both periods. Net interest revenue and net interest margin for the six months ended June30, 2021 were $270 million and 3.20%, respectively, compared to $228 million and 3.73%, respectively, for the same period in 2020. Results of operationsfor the six months ended June 30, 2021 were largely driven by the same factors affecting the quarter and are discussed in further detail throughout thefollowing sections of MD&A.

Critical Accounting Policies Our accounting and reporting policies are in accordance with GAAP and conform to general practices within the banking industry. Our more criticalaccounting and reporting policies include accounting for the ACL and fair value measurements, both of which involve the use of estimates and requiresignificant judgments by management. Different assumptions in the application of these policies could result in material changes in our consolidatedfinancial position or consolidated results of operations. Our critical accounting policies are discussed in MD&A in our 2020 10-K. There have been nosignificant changes to our critical accounting policies in 2021.

34

Non-GAAP Reconciliation and Explanation

This Report contains financial information determined by methods other than in accordance with GAAP. Such non-GAAP financial information includesthe following measures: “tangible book value per common share,” and “tangible common equity to tangible assets.” In addition, management presents non-GAAP operating performance measures, which exclude merger-related and other items that are not part of our ongoing business operations. Operatingperformance measures include “expenses – operating,” “net income – operating,” “diluted income per common share – operating,” “return on commonequity – operating,” “return on tangible common equity – operating,” “return on assets – operating,” “dividend payout ratio – operating” and “efficiencyratio – operating.” Management has developed internal policies and procedures to accurately capture and account for merger-related and other charges andthose charges are reviewed with the Audit Committee of our Board each quarter. Management uses these non-GAAP measures because it believes theyprovide useful supplemental information for evaluating our operations and performance over periods of time, as well as in managing and evaluating ourbusiness and in discussions about our operations and performance. Management believes these non-GAAP measures may also provide users of ourfinancial information with a meaningful measure for assessing our financial results and credit trends, as well as a comparison to financial results for priorperiods. Nevertheless, non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. These non-GAAPmeasures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP. In addition,because non-GAAP measures are not standardized, it may not be possible to compare our non-GAAP measures to similarly titled measures used by othercompanies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance withGAAP are included in Table 1 of MD&A.

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UNITED COMMUNITY BANKS, INC.Table 1 - Financial HighlightsSelected Financial Information (in thousands, except per share data)

2021 2020 SecondQuarter

2021 - 2020Change

For the Six Months Ended June30,

YTDChange

SecondQuarter First Quarter

FourthQuarter Third Quarter

SecondQuarter 2021 2020

INCOME SUMMARY Interest revenue $ 145,809 $ 141,542 $ 156,071 $ 141,773 $ 123,605 $ 287,351 $ 260,152 Interest expense 7,433 9,478 10,676 13,319 14,301 16,911 32,242

Net interest revenue 138,376 132,064 145,395 128,454 109,304 27 % 270,440 227,910 19 %(Release of) provision for credit losses (13,588) (12,281) 2,907 21,793 33,543 (25,869) 55,734 Noninterest income 35,841 44,705 41,375 48,682 40,238 (11) 80,546 66,052 22

Total revenue 187,805 189,050 183,863 155,343 115,999 62 376,855 238,228 58 Expenses 95,540 95,194 106,490 95,981 83,980 14 190,734 165,518 15

Income before income tax expense 92,265 93,856 77,373 59,362 32,019 188 186,121 72,710 156 Income tax expense 22,005 20,150 17,871 11,755 6,923 218 42,155 15,730 168

Net income 70,260 73,706 59,502 47,607 25,096 180 143,966 56,980 153 Merger-related and other charges 1,078 1,543 2,452 3,361 397 2,621 1,205 Income tax benefit of merger-related and othercharges (246) (335) (552) (519) (87) (581) (269)

Net income - operating $ 71,092 $ 74,914 $ 61,402 $ 50,449 $ 25,406 180 $ 146,006 $ 57,916 152

PERFORMANCE MEASURESPer common share:

Diluted net income - GAAP $ 0.78 $ 0.82 $ 0.66 $ 0.52 $ 0.32 144 $ 1.60 $ 0.71 125 Diluted net income - operating 0.79 0.83 0.68 0.55 0.32 147 1.62 0.73 122 Cash dividends declared 0.19 0.19 0.18 0.18 0.18 6 0.38 0.36 6 Book value 22.81 22.15 21.90 21.45 21.22 7 22.81 21.22 7 Tangible book value 18.49 17.83 17.56 17.09 16.95 9 18.49 16.95 9

Key performance ratios:Return on common equity - GAAP 14.08 % 15.37 % 12.36 % 10.06 % 6.17 % 14.71 % 7.01 %Return on common equity - operating 14.25 15.63 12.77 10.69 6.25 14.92 7.13 Return on tangible common equity - operating

17.81 19.68 16.23 13.52 8.09 18.72 9.20 Return on assets - GAAP 1.46 1.62 1.30 1.07 0.71 1.54 0.85 Return on assets - operating 1.48 1.65 1.34 1.14 0.72 1.56 0.86 Dividend payout ratio - GAAP 24.36 23.17 27.27 34.62 56.25 23.75 50.70 Dividend payout ratio - operating 24.05 22.89 26.47 32.73 56.25 23.46 49.32 Net interest margin (FTE) 3.19 3.22 3.55 3.27 3.42 3.20 3.73 Efficiency ratio - GAAP 54.53 53.55 56.73 54.14 55.86 54.04 56.00 Efficiency ratio - operating 53.92 52.68 55.42 52.24 55.59 53.30 55.59 Equity to total assets 11.04 10.95 11.29 11.47 11.81 11.04 11.81 Tangible common equity to tangible assets 8.71 8.57 8.81 8.89 9.12 8.71 9.12

ASSET QUALITYNonperforming loans $ 46,123 $ 55,900 $ 61,599 $ 49,084 $ 48,021 (4) $ 46,123 $ 48,021 (4)Foreclosed properties 224 596 647 953 477 224 477

Total NPAs 46,347 56,496 62,246 50,037 48,498 (4) 46,347 48,498 (4)ACL - loans 111,616 126,866 137,010 134,256 103,669 8 111,616 103,669 8 Net charge-offs (456) (305) 1,515 2,538 6,149 (761) 14,263 (105)ACL - loans to loans 0.98 % 1.09 % 1.20 % 1.14 % 1.02 % 0.98 % 1.02 %Net charge-offs to average loans (0.02) (0.01) 0.05 0.09 0.25 (0.01) 0.31 NPAs to loans and foreclosed properties 0.41 0.48 0.55 0.42 0.48 0.41 0.48 NPAs to total assets 0.25 0.30 0.35 0.29 0.32 0.25 0.32

AVERAGE BALANCES ($ in millions)Loans $ 11,617 $ 11,433 $ 11,595 $ 11,644 $ 9,773 19 $ 11,525 $ 9,301 24 Investment securities 4,631 3,991 3,326 2,750 2,408 92 4,313 2,464 75 Earning assets 17,540 16,782 16,394 15,715 12,958 35 17,163 12,378 39 Total assets 18,792 18,023 17,698 17,013 14,173 33 18,410 13,558 36 Deposits 16,132 15,366 15,057 14,460 12,071 34 15,751 11,493 37 Shareholders’ equity 2,060 2,025 1,994 1,948 1,686 22 2,042 1,670 22 Common shares - basic (thousands) 87,289 87,322 87,258 87,129 78,920 11 87,306 79,130 10 Common shares - diluted (thousands) 87,421 87,466 87,333 87,205 78,924 11 87,443 79,186 10

AT PERIOD END ($ in millions)Loans $ 11,391 $ 11,679 $ 11,371 $ 11,799 $ 10,133 12 $ 11,391 $ 10,133 12 Investment securities 4,928 4,332 3,645 3,089 2,432 103 4,928 2,432 103 Total assets 18,896 18,557 17,794 17,153 15,005 26 18,896 15,005 26 Deposits 16,328 15,993 15,232 14,603 12,702 29 16,328 12,702 29 Shareholders’ equity 2,086 2,031 2,008 1,967 1,772 18 2,086 1,772 18 Common shares outstanding (thousands) 86,665 86,777 86,675 86,611 78,335 11 86,665 78,335 11

Excludes merger-related and other charges. Net income less preferred stock dividends, divided by average realized common equity, which excludes AOCI. Excludes effect of acquisition related intangibles andassociated amortization. Annualized.

(1)

(1)

(3)

(2)(4)

(1)(2)(4)

(1)(2)(3)(4)

(4)

(1)(4)

(1)

(4)

(1)

(3)

(4)

(1) (2) (3)

(4)

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UNITED COMMUNITY BANKS, INC.Table 1 (Continued) - Non-GAAP Performance Measures ReconciliationSelected Financial Information(in thousands, except per share data)

2021 2020For the Six Months Ended June

30,Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter 2021 2020

Expense reconciliation Expenses (GAAP) $ 95,540 $ 95,194 $ 106,490 $ 95,981 $ 83,980 $ 190,734 $ 165,518 Merger-related and other charges (1,078) (1,543) (2,452) (3,361) (397) (2,621) (1,205)

Expenses - operating $ 94,462 $ 93,651 $ 104,038 $ 92,620 $ 83,583 $ 188,113 $ 164,313

Net income reconciliationNet income (GAAP) $ 70,260 $ 73,706 $ 59,502 $ 47,607 $ 25,096 $ 143,966 $ 56,980 Merger-related and other charges 1,078 1,543 2,452 3,361 397 2,621 1,205 Income tax benefit of merger-related and other charges (246) (335) (552) (519) (87) (581) (269)

Net income - operating $ 71,092 $ 74,914 $ 61,402 $ 50,449 $ 25,406 $ 146,006 $ 57,916

Diluted income per common share reconciliationDiluted income per common share (GAAP) $ 0.78 $ 0.82 $ 0.66 $ 0.52 $ 0.32 $ 1.60 $ 0.71 Merger-related and other charges, net of tax 0.01 0.01 0.02 0.03 — 0.02 0.02

Diluted income per common share - operating $ 0.79 $ 0.83 $ 0.68 $ 0.55 $ 0.32 $ 1.62 $ 0.73

Book value per common share reconciliationBook value per common share (GAAP) $ 22.81 $ 22.15 $ 21.90 $ 21.45 $ 21.22 $ 22.81 $ 21.22 Effect of goodwill and other intangibles (4.32) (4.32) (4.34) (4.36) (4.27) (4.32) (4.27)

Tangible book value per common share $ 18.49 $ 17.83 $ 17.56 $ 17.09 $ 16.95 $ 18.49 $ 16.95

Return on tangible common equity reconciliationReturn on common equity (GAAP) 14.08 % 15.37 % 12.36 % 10.06 % 6.17 % 14.71 % 7.01 %Merger-related and other charges, net of tax 0.17 0.26 0.41 0.63 0.08 0.21 0.12 Return on common equity - operating 14.25 15.63 12.77 10.69 6.25 14.92 7.13 Effect of goodwill and other intangibles 3.56 4.05 3.46 2.83 1.84 3.80 2.07

Return on tangible common equity - operating 17.81 % 19.68 % 16.23 % 13.52 % 8.09 % 18.72 % 9.20 %

Return on assets reconciliationReturn on assets (GAAP) 1.46 % 1.62 % 1.30 % 1.07 % 0.71 % 1.54 % 0.85 %Merger-related and other charges, net of tax 0.02 0.03 0.04 0.07 0.01 0.02 0.01

Return on assets - operating 1.48 % 1.65 % 1.34 % 1.14 % 0.72 % 1.56 % 0.86 %

Dividend payout ratio reconciliationDividend payout ratio (GAAP) 24.36 % 23.17 % 27.27 % 34.62 % 56.25 % 23.75 % 50.70 %Merger-related and other charges, net of tax (0.31) (0.28) (0.80) (1.89) — (0.29) (1.38)

Dividend payout ratio - operating 24.05 % 22.89 % 26.47 % 32.73 % 56.25 % 23.46 % 49.32 %

Efficiency ratio reconciliationEfficiency ratio (GAAP) 54.53 % 53.55 % 56.73 % 54.14 % 55.86 % 54.04 % 56.00 %Merger-related and other charges (0.61) (0.87) (1.31) (1.90) (0.27) (0.74) (0.41)

Efficiency ratio - operating 53.92 % 52.68 % 55.42 % 52.24 % 55.59 % 53.30 % 55.59 %

Tangible common equity to tangible assetsreconciliationEquity to total assets (GAAP) 11.04 % 10.95 % 11.29 % 11.47 % 11.81 % 11.04 % 11.81 %Effect of goodwill and other intangibles (1.82) (1.86) (1.94) (2.02) (2.05) (1.82) (2.05)Effect of preferred equity (0.51) (0.52) (0.54) (0.56) (0.64) (0.51) (0.64)

Tangible common equity to tangible assets 8.71 % 8.57 % 8.81 % 8.89 % 9.12 % 8.71 % 9.12 %

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Net Interest Revenue

Net interest revenue, which is the difference between the interest earned on assets and the interest paid on deposits and borrowed funds, is the single largestcomponent of total revenue. Management seeks to optimize this revenue while balancing interest rate, credit and liquidity risks.

The banking industry uses two ratios to measure the relative profitability of net interest revenue. The net interest spread measures the difference betweenthe average yield on interest-earning assets and the average rate paid on interest-bearing liabilities. The interest rate spread eliminates the effect ofnoninterest-bearing deposits and gives a direct perspective on the effect of market interest rate movements. The net interest margin is an indication of theprofitability of a company’s balance sheet and is defined as net interest revenue as a percent of average total interest-earning assets, which includes thepositive effect of funding a portion of interest-earning assets with noninterest-bearing deposits and stockholders’ equity.

The following tables indicate the relationship between interest revenue and expense and the average amounts of assets and liabilities, which providesfurther insight into net interest spread and net interest margin for the periods indicated. As shown in the tables, both average assets and average liabilitiesfor the three and six months ended June 30, 2021 increased compared to the same periods of 2020. The increase in average assets was primarily in averageinterest-earning assets including average loans, securities and interest-earning deposits in banks. The increase in average liabilities was driven by theincrease in both average interest-bearing and noninterest-bearing deposits. In addition to organic growth, the increases in average loans and deposits reflectthose acquired from Three Shores and the addition of PPP loans to our loan portfolio. PPP loans also contributed to deposit growth, since in many cases theproceeds of PPP loans remained in United customer deposit accounts during the first half of 2021. Approximately $1.93 billion of the increase in averageloans for the three months ended June 30, 2021 can be attributed to the Three Shores and PPP loan portfolios. The forgiveness of PPP loans and stronggrowth in deposits generated additional liquidity, which we deployed into our investment portfolio and was also reflected in our cash balances.

Net interest revenue for the second quarter and first six months of 2021 was $138 million and $270 million, respectively. As set forth in the followingtables, FTE net interest revenue for the second quarter and first six months of 2021 was $139 million and $272 million, representing 27% and 19%increases, respectively, from the second quarter and first six months of 2020. The increase in net interest revenue for the three and six months ended June30, 2021 compared to the same periods of 2020 was primarily driven by the loan growth discussed above and accelerated recognition of net deferred PPPloan fees upon forgiveness or repayment, partially offset by the impact of historically low interest rates on our asset sensitive balance sheet.

The net interest spread for the second quarter and first six months of 2021 decreased 7 and 36 basis points, respectively, from the same periods of 2020.The net interest margin for the second quarter and first six months of 2021 decreased 23 basis points and 53 basis points, respectively, from the sameperiods of 2020. The decrease in the net interest margin and net interest spread during the three and six months ended June 30, 2021 was primarilyattributable to the impact of falling interest rates as the decreases in loan and securities yields exceeded the decrease in deposit rates. Also, strong depositgrowth led to a changing mix of interest-earning assets, which contributed to the net interest margin and net interest spread compression as average cashbalances increased and the average balance of the lower-yielding investment securities portfolio as a percentage of total assets was 25% for the secondquarter of 2021 compared with 17% for the same period of 2020. The impact of the falling yield on our interest-earning assets was partially mitigated by amore favorable interest-bearing deposit mix. For the three months ended June 30, 2021, 84% of interest-bearing deposits consisted of lower-costtransaction deposits compared to 75% for the same period of 2020, representing a shift from higher-cost time deposits. The shift in the interest-bearingdeposit mix was also evident when comparing the six months ended June 30, 2021 and 2020. The decrease in the net interest margin was also partiallyoffset by continued growth in noninterest-bearing deposits.

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Table 2 - Average Consolidated Balance Sheets and Net Interest AnalysisFor the Three Months Ended June 30,

2021 2020

(dollars in thousands, FTE)AverageBalance Interest Average Rate

AverageBalance Interest Average Rate

Assets: Interest-earning assets:

Loans, net of unearned income (FTE) $ 11,616,802 $ 127,458 4.40 % $ 9,772,703 $ 107,398 4.42 %Taxable securities 4,242,297 15,287 1.44 2,229,371 14,045 2.52 Tax-exempt securities (FTE) 388,609 3,030 3.12 178,903 2,110 4.72 Federal funds sold and other interest-earning assets 1,292,026 1,055 0.33 776,776 857 0.44 Total interest-earning assets (FTE) 17,539,734 146,830 3.36 12,957,753 124,410 3.86

Noninterest-earning assets:Allowance for credit losses (128,073) (89,992)Cash and due from banks 152,443 138,842 Premises and equipment 225,017 217,096 Other assets 1,002,634 949,201 Total assets $ 18,791,755 $ 14,172,900

Liabilities and Shareholders' Equity:Interest-bearing liabilities:

Interest-bearing deposits:NOW and interest-bearing demand $ 3,428,009 1,382 0.16 $ 2,444,895 1,628 0.27 Money market 3,814,960 1,355 0.14 2,541,805 3,421 0.54 Savings 1,080,267 53 0.02 788,247 39 0.02 Time 1,548,487 899 0.23 1,805,671 6,058 1.35 Brokered time deposits 64,332 (69) (0.43) 130,556 125 0.39

Total interest-bearing deposits 9,936,055 3,620 0.15 7,711,174 11,271 0.59 Federal funds purchased and other borrowings 111 — — 1 — — Federal Home Loan Bank advances — — — — — — Long-term debt 285,389 3,813 5.36 228,096 3,030 5.34 Total borrowed funds 285,500 3,813 5.36 228,097 3,030 5.34 Total interest-bearing liabilities 10,221,555 7,433 0.29 7,939,271 14,301 0.72

Noninterest-bearing liabilities:Noninterest-bearing deposits 6,196,045 4,360,095 Other liabilities 314,130 187,375 Total liabilities 16,731,730 12,486,741

Shareholders' equity 2,060,025 1,686,159 Total liabilities and shareholders' equity $ 18,791,755 $ 14,172,900

Net interest revenue (FTE) $ 139,397 $ 110,109

Net interest-rate spread (FTE) 3.07 % 3.14 %

Net interest margin (FTE) 3.19 % 3.42 %

Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, reflecting the statutory federalincome tax rate and the federal tax adjusted state income tax rate.Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.AFS securities are shown at amortized cost. Pretax unrealized gains of $28.6 million and $66.3 million in 2021 and 2020, respectively, are included in other assets for purposes of thispresentation.Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.

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Table 3 - Average Consolidated Balance Sheets and Net Interest AnalysisFor the Six Months Ended June 30,

2021 2020

(dollars in thousands, fully taxable equivalent (FTE))AverageBalance Interest Average Rate

AverageBalance Interest Average Rate

Assets: Interest-earning assets:

Loans, net of unearned income (FTE) $ 11,525,363 $ 252,580 4.42 % $ 9,300,792 $ 225,194 4.87 %Taxable securities 3,932,545 28,585 1.45 2,293,502 29,916 2.61 Tax-exempt securities (FTE) 380,370 5,918 3.11 170,578 4,155 4.87 Federal funds sold and other interest-earning assets 1,324,776 2,277 0.34 612,776 2,489 0.81 Total interest-earning assets (FTE) 17,163,054 289,360 3.40 12,377,648 261,754 4.25

Non-interest-earning assets:Allowance for loan losses (135,845) (79,885)Cash and due from banks 146,401 133,548 Premises and equipment 223,224 218,170 Other assets 1,012,896 908,828 Total assets $ 18,409,730 $ 13,558,309

Liabilities and Shareholders' Equity:Interest-bearing liabilities:

Interest-bearing deposits:NOW and interest-bearing demand $ 3,379,794 2,868 0.17 $ 2,428,815 4,606 0.38 Money market 3,774,201 3,159 0.17 2,441,264 7,952 0.66 Savings 1,035,176 102 0.02 750,179 74 0.02 Time 1,595,196 2,487 0.31 1,823,612 13,308 1.47 Brokered time deposits 69,765 223 0.64 105,689 406 0.77

Total interest-bearing deposits 9,854,132 8,839 0.18 7,549,559 26,346 0.70 Federal funds purchased and other borrowings 62 — — 199 1 1.01 Federal Home Loan Bank advances 1,657 2 0.24 83 1 2.42 Long-term debt 301,193 8,070 5.40 220,429 5,894 5.38 Total borrowed funds 302,912 8,072 5.37 220,711 5,896 5.37 Total interest-bearing liabilities 10,157,044 16,911 0.34 7,770,270 32,242 0.83

Noninterest-bearing liabilities:Noninterest-bearing deposits 5,896,882 3,943,740 Other liabilities 313,374 174,781 Total liabilities 16,367,300 11,888,791

Shareholders' equity 2,042,430 1,669,518 Total liabilities and shareholders' equity $ 18,409,730 $ 13,558,309

Net interest revenue (FTE) $ 272,449 $ 229,512

Net interest-rate spread (FTE) 3.06 % 3.42 %

Net interest margin (FTE) 3.20 % 3.73 %

Interest revenue on tax-exempt securities and loans has been increased to reflect comparable interest on taxable securities and loans. The rate used was 26%, reflecting the statutory federalincome tax rate and the federal tax adjusted state income tax rate.Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.Securities AFS are shown at amortized cost. Pretax unrealized gains of $43.4 million and $59.6 million in 2021 and 2020, respectively, are included in other assets for purposes of thispresentation.Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

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The following table shows the relative effect on net interest revenue for changes in the average outstanding amounts (volume) of interest-earning assets andinterest-bearing liabilities and the rates earned and paid on such assets and liabilities (rate). Variances resulting from a combination of changes in rate andvolume are allocated in proportion to the absolute dollar amounts of the change in each category.

Table 4 - Change in Interest Revenue and Expense on a Taxable Equivalent Basis(in thousands)

Three Months Ended June 30, 2021 Six Months Ended June 30, 2021Compared to 2020 Increase (Decrease) Due to Changes in

Volume Rate Total Volume Rate TotalInterest-earning assets:Loans (FTE) $ 20,233 $ (173) $ 20,060 $ 50,203 $ (22,817) $ 27,386 Taxable securities 8,999 (7,757) 1,242 15,535 (16,866) (1,331)Tax-exempt securities (FTE) 1,823 (903) 920 3,683 (1,920) 1,763 Federal funds sold and other interest-earning assets 462 (264) 198 1,777 (1,989) (212)

Total interest-earning assets (FTE) 31,517 (9,097) 22,420 71,198 (43,592) 27,606

Interest-bearing liabilities:NOW and interest-bearing demand accounts 524 (770) (246) 1,390 (3,128) (1,738)Money market accounts 1,203 (3,269) (2,066) 2,975 (7,768) (4,793)Savings deposits 14 — 14 28 — 28 Time deposits (758) (4,401) (5,159) (1,487) (9,334) (10,821)Brokered deposits (37) (157) (194) (122) (61) (183)

Total interest-bearing deposits 946 (8,597) (7,651) 2,784 (20,291) (17,507)Federal funds purchased & other borrowings — — — — (1) (1)FHLB advances — — — 3 (2) 1 Long-term debt 765 18 783 2,164 12 2,176

Total borrowed funds 765 18 783 2,167 9 2,176 Total interest-bearing liabilities 1,711 (8,579) (6,868) 4,951 (20,282) (15,331)

Increase in net interest revenue (FTE) $ 29,806 $ (518) $ 29,288 $ 66,247 $ (23,310) $ 42,937

Provision for Credit Losses The ACL represents management’s estimate of life of loan credit losses in the loan portfolio and unfunded loan commitments. Management’s estimate ofcredit losses under CECL is determined using a model that relies on reasonable and supportable forecasts and historical loss information to determine thebalance of the ACL and resulting provision for credit losses.

We recorded negative provisions for credit losses of $13.6 million and $25.9 million for the three and six months ended June 30, 2021, respectively,compared to $33.5 million and $55.7 million in provision expense for the same periods in 2020, respectively. The amount of provision recorded in eachperiod was the amount required such that the total ACL reflected the appropriate balance as determined by management reflecting expected life of loanlosses. The negative provision expense for the three and six months ended June 30, 2021 compared to the same periods of 2020 was primarily a result of animproved economic forecast combined with net recoveries recognized during the second quarter and first half of 2021. The provision for credit losses forthe second quarter and first half of 2020 was elevated due to a less optimistic economic forecast amidst the COVID-19 pandemic.

For the six months ended June 30, 2021, net loan charge-offs (recoveries) as an annualized percentage of average outstanding loans were (0.01)%compared to 0.31% for the same period in 2020. The net recoveries amount recorded during the first six months of 2021 was mostly attributable to onelarge commercial credit recovery during the first quarter, strong recoveries from a number of other credits and lower charge-offs during the second quarter. Additional discussion on credit quality and the ACL is included in the “Asset Quality and Risk Elements” section of MD&A in this Report.

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Noninterest income The following table presents the components of noninterest income for the periods indicated.

Table 5 - Noninterest Income(in thousands)

Three Months Ended

June 30, ChangeSix Months Ended

June 30, Change 2021 2020 Amount Percent 2021 2020 Amount PercentOverdraft fees $ 2,274 $ 1,997 $ 277 14 % $ 4,616 $ 5,516 $ (900) (16)%ATM and debit card fees 3,306 3,199 107 3 6,396 6,268 128 2 Other service charges and fees 2,755 1,799 956 53 4,893 3,849 1,044 27

Total service charges and fees 8,335 6,995 1,340 19 15,905 15,633 272 2 Mortgage loan gains and related fees 11,136 23,659 (12,523) (53) 33,708 31,969 1,739 5 Wealth management fees 3,822 1,324 2,498 189 7,327 2,964 4,363 147 Gains on sales of other loans 4,123 1,040 3,083 296 5,153 2,714 2,439 90 Securities gains, net 41 — 41 41 — 41 Other noninterest income:

Other lending and loan servicingfees 2,085 1,298 787 61 4,245 2,963 1,282 43 Customer derivatives 260 1,181 (921) (78) 1,952 2,588 (636) (25)Other investment gains (losses) 1,648 18 1,630 3,154 (1,139) 4,293 BOLI 972 2,032 (1,060) (52) 1,829 2,877 (1,048) (36)Treasury management income 710 462 248 54 1,355 971 384 40 Other 2,709 2,229 480 22 5,877 4,512 1,365 30 Total other noninterest income 8,384 7,220 1,164 16 18,412 12,772 5,640 44

Total noninterest income $ 35,841 $ 40,238 $ (4,397) (11) $ 80,546 $ 66,052 $ 14,494 22

Total service charges and fees for the first half of 2021 were flat compared to the same period of 2020, reflecting an increase in other service charges andfees that was mostly offset by a decrease in overdraft fees. During the second quarter of 2021, total service charges and fees increased $1.34 millioncompared to the respective period of 2020, which was mostly driven by the receipt of larger vendor rebates reflected in other service charges and fees forthe three and six months ended 2021. Overdraft fees have remained at relatively low levels since the onset of the COVID-19 pandemic. During the first halfof 2020, the decrease in overdraft fees was attributable to lower transaction volume due to widespread economic shutdowns combined with governmentstimulus payments disbursed during the second quarter, both of which increased transaction deposit account balances. During the first half of 2021,transaction deposit account balances remained elevated due to government stimulus payments and customer preferences to allocate more funds totransaction deposit accounts rather than time deposits in the current low interest rate environment.

Mortgage loan gains and related fees consists primarily of fees earned on mortgage originations, gains on the sale of mortgages in the secondary marketand fair value adjustments to our mortgage servicing asset. We recognize the majority of gains on mortgages at the point customers enter into mortgage ratelock commitments, making our mortgage pipeline a significant driver of mortgage gains in any given period. The change in mortgage loan gains andrelated fees is strongly tied to the interest rate environment. Customer demand, also primarily driven by interest rates, as well as the market-driven gain onsale spread are also primary drivers of mortgage income. From the second quarter of 2020 through the first quarter of 2021, we experienced a strongdemand for mortgage refinances and home purchases following the drop in interest rates in early 2020. During the second quarter of 2021, the demand forrefinances began to decrease as rates increased, resulting in a decrease in the volume of mortgage rate locks compared to the same period of 2020. Overallmortgage originations for the three and six months ended June 30, 2021 surpassed that of the respective periods of 2020 as the demand for home purchasesremained strong. Offsetting strong mortgage origination demand, during the three months ended June 30, 2021 and 2020, we recorded negative fair valueadjustments to the mortgage servicing rights asset of $2.58 million and $1.78 million, respectively, as projected mortgage prepayments accelerated asinterest rates decreased. Additionally, our gain on sale spread for the second quarter of 2021 of 3.86% decreased compared to 4.24% for the second quarterof 2020 contributing to the decrease in mortgage loan gains.

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Table 6 - Selected Mortgage Metrics(dollars in thousands)

Three Months Ended June 30, Six Months Ended June 30,2021 2020 % Change 2021 2020 % Change

Mortgage rate locks $ 701,666 $ 801,836 (12)% $ 1,695,005 $ 1,602,493 6 %# of mortgage rate locks 2,090 2,981 (30) 5,072 5,877 (14)

Mortgage loans sold $ 407,468 $ 395,406 3 $ 743,141 $ 654,518 14 # of mortgage loans sold 1,704 1,712 — 3,109 2,870 8

Mortgage loans originated:Purchases $ 406,552 $ 242,920 67 $ 699,471 $ 461,498 52 Refinances 271,850 318,868 (15) 635,403 488,149 30

Total $ 678,402 $ 561,788 21 $ 1,334,874 $ 949,647 41

# of mortgage loans originated 1,992 2,095 (5) 4,134 3,565 16

Gains on the sale of other loans for the second quarter and first six months of 2021 were up significantly compared to the same periods of 2020 mostly dueto the sale of equipment financing loans and leases and USDA renewable energy loans in the second quarter of 2021. Our SBA/USDA lending strategyincludes selling a portion of the loan production each quarter. The amount of loans sold depends on several variables including the current lendingenvironment and balance sheet management activities. From time to time, we also sell certain equipment financing receivables based on market conditions.The following table presents loans sold and the corresponding gains or losses recognized on the sale for the periods indicated.

Table 7 - Other Loan Sales(in thousands)


Loans Sold Gain (Loss) Loans Sold Gain (Loss) Loans Sold Gain (Loss) Loans Sold Gain (Loss)Guaranteed portion of SBA/USDA loans $ 32,303 $ 3,320 $ 14,035 $ 1,021 $ 43,648 $ 4,343 $ 18,069 $ 1,436 Equipment financing receivables 18,908 803 1,704 19 19,967 810 23,921 1,278

Total $ 51,211 $ 4,123 $ 15,739 $ 1,040 $ 63,615 $ 5,153 $ 41,990 $ 2,714

The increase in brokerage and wealth management fees during the second quarter and first six months of 2021 from the same periods of 2020 was primarilya result of the addition of the Three Shores wealth management business.

Other noninterest income for the for the three and six months ended June 30, 2021 increased from the same periods of 2020 primarily due to positive fairvalue adjustments on deferred compensation plan assets and other investments compared to negative fair value adjustments during the first half of 2020resulting from the COVID-19 pandemic related market disruption. The increase in lending and loan servicing fees also contributed to the increase in otherincome, which was mostly attributable to volume driven fee income from our equipment finance business. These increases were offset by a decrease inBOLI income compared to three and six months ended June 30, 2020, which included a death benefit gain of $1.10 million. Customer derivative incomealso decreased for the three and six months ended June 30, 2021 compared to the same periods of 2020 due to increases in interest rates negativelyimpacting the demand for customer derivative products.

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Noninterest Expenses

The following table presents the components of noninterest expenses for the periods indicated.

Table 8 - Noninterest Expenses(in thousands)

Three Months Ended

June 30, ChangeSix Months Ended

June 30, Change 2021 2020 Amount Percent 2021 2020 Amount PercentSalaries and employee benefits $ 59,414 $ 51,811 $ 7,603 15 % $ 119,999 $ 103,169 $ 16,830 16 %Communications and equipment 7,408 6,556 852 13 14,611 12,502 2,109 17 Occupancy 7,078 5,945 1,133 19 14,034 11,659 2,375 20 Advertising and public relations 1,493 2,260 (767) (34) 2,692 3,534 (842) (24)Postage, printing and supplies 1,618 1,613 5 — 3,440 3,283 157 5 Professional fees 4,928 4,823 105 2 9,162 8,920 242 3 Lending and loan servicing expense 3,181 3,189 (8) — 6,058 5,482 576 11 Outside services - electronic banking 2,285 1,796 489 27 4,503 3,628 875 24 FDIC assessments and other regulatorycharges 1,901 1,558 343 22 3,797 3,042 755 25 Amortization of intangibles 929 987 (58) (6) 1,914 2,027 (113) (6)Other 4,227 3,045 1,182 39 7,903 7,067 836 12

Total excluding merger-related andother charges 94,462 83,583 10,879 13 188,113 164,313 23,800 14

Merger-related and other charges 1,078 397 681 2,621 1,205 1,416 Total noninterest expenses $ 95,540 $ 83,980 $ 11,560 14 $ 190,734 $ 165,518 $ 25,216 15

Salaries and employee benefits for the second quarter and first six months of 2021 increased from the same periods of 2020 as a result of several factorsincluding growth in our employee base from the acquisition of Three Shores as well as increased mortgage commissions and other incentives resultingfrom increased production and strong performance. The increase also reflected our merit-based salary increases awarded during the second quarter of 2021.These increases in expense were partially offset by higher deferred loan origination costs related to increases in loan production. Full-time equivalentheadcount totaled 2,440 at June 30, 2021, up from 2,297 at June 30, 2020.

Communications and equipment expense increased for the second quarter and first six months of 2021 compared to the same periods of 2020 primarily dueto incremental software contract costs. The increase in occupancy costs was mostly attributable to the addition of operating lease costs associated with theacquired Three Shores’ locations. Advertising and public relations expense for the three and six months ended June 30, 2021 decreased relative to the sameperiods of 2020 as 2020 included contributions to the United Community Bank Foundation in its inaugural year. The increase in outside services -electronic banking primarily related to increased internet banking costs.

Merger-related and other charges for the second quarter and first six months of 2021 primarily consisted of expenses associated with the acquisitions ofThree Shores and FinTrust. Merger-related and other charges for the three and six months ended June 30, 2020 were mostly related to the acquisition ofThree Shores.

Balance Sheet Review Total assets at June 30, 2021 and December 31, 2020 were $18.9 billion and $17.8 billion, respectively. Total liabilities at June 30, 2021 and December 31,2020 were $16.8 billion and $15.8 billion, respectively. Shareholders’ equity totaled $2.09 billion and $2.01 billion at June 30, 2021 and December 31,2020, respectively. The increase in assets was primarily evident in our investment portfolio, which we have strategically grown by $1.28 billion during2021 to deploy excess liquidity provided by PPP loan forgiveness and growth in our customer deposits.

Loans

Our loan portfolio is our largest category of interest-earning assets. The following table presents a summary by loan type of the loan portfolio, of whichapproximately 71% was secured by real estate at June 30, 2021.

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Table 9 - Loans Outstanding(in thousands)

June 30, 2021 December 31, 2020Amortized Cost % of total loans Amortized Cost % of total loans

Owner occupied commercial real estate $ 2,149,371 19 % $ 2,090,443 18 %Income producing commercial real estate 2,550,243 22 2,540,750 22 Commercial & industrial 2,234,646 20 2,498,560 22 Commercial construction 926,809 8 967,305 9 Equipment financing 968,805 8 863,830 8

Total commercial 8,829,874 77 8,960,888 79 Residential mortgage 1,472,608 13 1,284,920 11 HELOC 660,881 6 697,117 6 Residential construction 288,708 3 281,430 3 Consumer 138,675 1 146,460 1

Total loans $ 11,390,746 100 % $ 11,370,815 100 %

Commercial and industrial loans as of June 30, 2021 and December 31, 2020 included $472 million and $646 million of PPP loans, respectively.

Asset Quality and Risk Elements We manage asset quality and control credit risk through review and oversight of the loan portfolio as well as adherence to policies designed to promotesound underwriting and loan monitoring practices. Our credit risk management function is responsible for monitoring asset quality and Board approvedportfolio concentration limits, establishing credit policies and procedures and enforcing the consistent application of these policies and procedures.Additional information on our credit administration function is included in Part I, Item 1 under the heading Lending Activities in our 2020 10-K. We conduct reviews of classified performing and non-performing loans, TDRs, past due loans and portfolio concentrations on a regular basis to identifyrisk migration and potential charges to the ACL. These items are discussed in a series of meetings attended by credit risk management leadership andleadership from various lending groups. In addition to the reviews mentioned above, an independent loan review team reviews the portfolio to ensureconsistent application of risk rating policies and procedures.

The ACL reflects management’s assessment of the life of loan expected credit losses in the loan portfolio and unfunded loan commitments. Thisassessment involves uncertainty and judgment and is subject to change in future periods. The amount of any changes could be significant if management’sassessment of loan quality or collateral values changes substantially with respect to one or more loan relationships or portfolios. The allocation of the ACLis based on reasonable and supportable forecasts, historical data, subjective judgment and estimates and therefore, is not necessarily indicative of thespecific amounts or loan categories in which charge-offs may ultimately occur. In addition, bank regulatory authorities, as part of their periodicexamination of the Bank, may require adjustments to the provision for credit losses in future periods if, in their opinion, the results of their review warrantsuch additions. See the Critical Accounting Policies section of MD&A in our 2020 10-K for additional information on the allowance for credit losses.

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The following table presents a summary of the changes in the ACL for the periods indicated.

Table 10 - ACL(in thousands)

Three Months Ended


June 30, 2021 2020 2021 2020

ACL - loans, beginning of period $ 126,866 $ 81,905 $ 137,010 $ 62,089 Adoption of CECL — — — 6,880 ACL - loans, adjusted beginning balance 126,866 81,905 137,010 68,969 Charge-offs:

Owner occupied commercial real estate 1 — 1 6 Income producing commercial real estate 52 4,589 1,059 5,000 Commercial & industrial 857 254 3,751 7,815 Commercial construction 46 239 224 239 Equipment financing 1,188 2,085 3,246 3,948 Residential mortgage — 50 215 334 HELOC 34 98 34 118 Residential construction — 32 10 54 Consumer 353 712 824 1,350 Total charge-offs 2,531 8,059 9,364 18,864

Recoveries:Owner occupied commercial real estate 156 466 396 1,500 Income producing commercial real estate 213 41 229 182 Commercial & industrial 797 291 6,444 667 Commercial construction 339 117 495 258 Equipment financing 887 420 1,434 776 Residential mortgage 194 56 317 331 HELOC 146 196 219 299 Residential construction 33 37 103 71 Consumer 222 286 488 517 Total recoveries 2,987 1,910 10,125 4,601 Net (recoveries) charge-offs (456) 6,149 (761) 14,263

(Release of) provision for credit losses - loans (15,706) 27,913 (26,155) 48,963 ACL - loans, end of period 111,616 103,669 111,616 103,669

ACL - unfunded commitments, beginning of period 8,726 6,470 10,558 3,458 Adoption of CECL — — — 1,871 ACL - unfunded commitments, adjusted beginning balance 8,726 6,470 10,558 5,329

Provision for credit losses - unfunded commitments 2,118 5,630 286 6,771 ACL - unfunded commitments, end of period 10,844 12,100 10,844 12,100

Total ACL $ 122,460 $ 115,769 $ 122,460 $ 115,769

Total loans:At period-end $ 11,390,746 $ 10,132,510 $ 11,390,746 $ 10,132,510 Average 11,616,802 9,772,703 11,525,363 9,300,792

ACL - loans, as a percentage of period-end loans 0.98 % 1.02 % 0.98 % 1.02 %As a percentage of average loans (annualized):

Net charge-offs (0.02) 0.25 (0.01) 0.31 Provision for credit losses - loans (0.54) 1.15 (0.46) 1.06

The reduction in the ACL since December 31, 2020 reflects an improved economic forecast, which includes an improved COVID-19 pandemic outlook,government stimulus spending, projected GDP growth and a continued low interest rate environment. Qualitative factors were used to moderate theimprovement in the economic forecast for certain portfolios in recognition of the increase in special mention and substandard assets at June 30, 2021.

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The following table presents a summary of loans by risk category for the dates indicated. See Note 4 to the consolidated financial statements in this Reportfor detailed descriptions of the risk categories.

Table 11 - Risk Categories(in thousands)

June 30, 2021 December 31, 2020 Change

Amortized Cost% of total

loans Amortized Cost % of total loans Amount PercentPass $ 10,781,793 95 % $ 10,846,850 95 % $ (65,057) (1)%Special mention 369,964 3 297,245 3 72,719 24 Substandard 238,989 2 226,720 2 12,269 5

Total loans $ 11,390,746 100 % $ 11,370,815 100 % $ 19,931 —

The increase in special mention and substandard loans since December 31, 2020 mostly reflects downgrades made during the first quarter of 2021 thatremained in place as of June 30, 2021. Downgrades primarily consisted of borrowers in industries with potentially higher risk of being impacted by thesocial and economic effects of the COVID-19 pandemic, such as senior care and hotels. We anticipate these borrowers’ financial position to strengthen inthe second half of 2021 as the economic outlook of the pandemic continues to improve.

We classify loans as substandard when there is one or more well-defined weaknesses that jeopardize the repayment by the borrower and there is a distinctpossibility that we could sustain some loss if the deficiency is not corrected. At June 30, 2021, substandard loans included accrual and nonaccrual loans of$193 million and $46.1 million, respectively. Special mention loans continue to accrue interest.

Nonperforming Assets

NPAs, which include nonaccrual loans and foreclosed properties, totaled $46.3 million at June 30, 2021, compared with $62.2 million at December 31,2020. The decrease in NPAs since December 31, 2020 is primarily a result of paydowns and payoffs of nonaccrual loans. Our policy is to place loans on nonaccrual status when, in the opinion of management, the full principal and interest on a loan is not likely to be collected orwhen the loan becomes 90 days past due. A loan may continue on accrual after 90 days, however, if it is well collateralized and in the process of collection.When a loan is placed on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Interest paymentsreceived on nonaccrual loans are applied to reduce the loan’s amortized cost. Loans are returned to accrual status when all the principal and interestamounts contractually due are brought current, there is a sustained period of repayment performance and future payments are reasonably assured. Generally, we do not commit to lend additional funds to customers whose loans are on nonaccrual status, although in certain isolated cases, we executeforbearance agreements whereby we agree to continue to fund construction loans to completion or other lines of credit as long as the borrower meets theconditions of the forbearance agreement. We may also fund other amounts necessary to protect collateral such as amounts to pay past due property taxesand insurance coverage.

Foreclosed property is initially recorded at fair value, less estimated costs to sell. If the fair value, less estimated costs to sell, at the time of foreclosure isless than the loan balance, the deficiency is charged against the allowance for loan losses. If the lesser of fair value, less estimated costs to sell, or the listedselling price, less the costs to sell, of the foreclosed property decreases during the holding period, a valuation allowance is established with a charge toforeclosed property expense. When the foreclosed property is sold, a gain or loss is recognized on the sale for the difference between the sales proceeds andthe carrying amount of the property.

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The table below summarizes NPAs.

Table 12 - NPAs(in thousands)

June 30,2021

December 31, 2020

Nonaccrual loans:Owner occupied commercial real estate 6,128 8,582 Income producing commercial real estate 13,100 15,149 Commercial & industrial 8,563 16,634 Commercial construction 1,229 1,745 Equipment financing 1,771 3,405 Total commercial 30,791 45,515

Residential mortgage 13,485 12,858 HELOC 1,433 2,487 Residential construction 307 514 Consumer 107 225 Total nonaccrual loans 46,123 61,599

Foreclosed properties 224 647 Total NPAs $ 46,347 $ 62,246

Nonaccrual loans as a percentage of total loans 0.40 % 0.54 %NPAs as a percentage of total loans and foreclosed properties 0.41 0.55 NPAs as a percentage of total assets 0.25 0.35

At June 30, 2021 and December 31, 2020, we had $57.3 million and $61.6 million, respectively, in loans with terms that have been modified in TDRs.Included therein were $16.7 million and $20.6 million, respectively, of TDRs that were classified as nonaccrual and were included in nonperforming loans.The remaining TDRs with an aggregate balance of $40.6 million and $41.0 million, respectively, were performing according to their modified terms andwere therefore not considered to be nonperforming assets.

The CARES Act and interagency guidance granted temporary relief from TDR classification for certain loans restructured as a result of COVID-19. During2020, we granted a significant number of payment deferral requests to our borrowers related to the economic disruption created by COVID-19. Wecontinued to grant payment deferral requests in 2021 to certain borrowers. The following table presents remaining COVID-19 related deferrals that, to theextent they qualified for exemption, were not considered TDRs as of June 30, 2021 and December 31, 2020.

Table 13 - COVID-19 Deferrals(in thousands)

June 30,2021

December 31, 2020

Owner occupied commercial real estate $ 1,460 $ 4,774 Income producing commercial real estate 7,791 45,190 Commercial & industrial 1,024 5,682 Commercial construction 170 1,745 Equipment financing 5,512 3,474

Total commercial 15,957 60,865 Residential mortgage 1,655 8,731 HELOC — 1,012 Residential construction 140 55 Consumer 61 46

Total COVID-19 deferrals $ 17,813 $ 70,709

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Investment Securities

The composition of the investment securities portfolio reflects our investment strategy of maintaining an appropriate level of liquidity while providing arelatively stable source of revenue. The investment securities portfolio also provides a balance to interest rate risk and credit risk in other categories of thebalance sheet while providing a vehicle for the investment of available funds, furnishing liquidity, and supplying securities to pledge as required collateralfor certain deposits and borrowings.

At June 30, 2021 and December 31, 2020, we had HTM debt securities with a carrying amount of $852 million and $420 million, respectively, and AFSdebt securities totaling $4.08 billion and $3.22 billion, respectively. The increased balances at June 30, 2021 reflect our decision to deploy liquiditygenerated through strong deposit growth by purchasing additional investment securities. At June 30, 2021 and December 31, 2020, the securities portfoliorepresented approximately 26% and 20%, respectively, of total assets.

In accordance with CECL, our HTM debt securities portfolio is evaluated quarterly to assess whether an ACL is required. We measure expected creditlosses on HTM debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit lossinformation that is adjusted for current conditions and reasonable and supportable forecasts. At June 30, 2021 and December 31, 2020, calculated creditlosses on HTM debt securities were not material due to the high credit quality of the portfolio, which included securities issued or guaranteed by U.S.Government agencies, GSEs, high credit quality municipalities and supranational entities. As a result, no ACL for HTM debt securities was recorded.

For AFS debt securities in an unrealized loss position, if we intend to sell, or if it is more likely than not that we will be required to sell the security beforerecovery of its amortized cost basis, the security's amortized cost basis is written down to fair value through income. Absent an intent or more than likelyrequirement to sell, we evaluate whether the decline in fair value has resulted from credit losses or other factors. The evaluation considers factors such asthe extent to which fair value is less than amortized cost, changes to the security’s rating, and adverse conditions specific to the security. If the evaluationindicates a credit loss exists, an ACL may be recorded, with such allowance limited to the amount by which fair value is below amortized cost. Anyimpairment unrelated to credit factors is recognized in OCI. At June 30, 2021 and December 31, 2020, there was no ACL related to the AFS debt securitiesportfolio. Losses on fixed income securities at June 30, 2021 and December 31, 2020 primarily reflected the effect of changes in interest rates.

Deposits

Customer deposits are the primary source of funds for the continued growth of our earning assets. Our high level of service, as evidenced by our strongcustomer satisfaction scores, has been instrumental in attracting and retaining customer deposit accounts. In addition to organic growth, at June 30, 2021,the increase in core transaction deposits was also attributable to PPP-related deposits. The growth in customer deposits has allowed us to reduce our usageof brokered deposits, which is reflected in the decrease since December 31, 2020. The decline in time deposits is mostly driven by customer preference toallocate funds to transaction deposits in the current low rate environment. The following table sets forth the deposit composition for the periods indicated.

Table 14 - Deposits(in thousands)

June 30, 2021 December 31, 2020Noninterest-bearing demand $ 6,260,756 $ 5,390,291 NOW and interest-bearing demand 3,518,686 3,346,490 Money market and savings 4,864,308 4,501,189 Time 1,500,049 1,704,290

Total customer deposits 16,143,799 14,942,260 Brokered deposits 183,968 290,098

Total deposits $ 16,327,767 $ 15,232,358

Borrowing Activities At June 30, 2021 and December 31, 2020, we had long-term debt outstanding of $262 million and $327 million, respectively, which includes seniordebentures, subordinated debentures, and trust preferred securities. The reduction in long-term debt since December 31, 2020 was a result of the repaymentof the 2025 subordinated debentures, the Southern Bancorp Capital Trust I trust preferred securities and the 2022 senior debentures of $11.3 million, $4.38million and $50.0 million, respectively.

Contractual Obligations There have not been any material changes to our contractual obligations since December 31, 2020.

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Off-Balance Sheet Arrangements We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of customers. Thesefinancial instruments include commitments to extend credit, letters of credit and financial guarantees. A commitment to extend credit is an agreement to lend to a customer as long as there is no violation of any condition established in the contract.Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Letters of credit and financialguarantees are conditional commitments issued to guarantee a customer’s performance to a third party and have essentially the same credit risk asextending loan facilities to customers. Those commitments are primarily issued to local businesses. The exposure to credit loss in the event of nonperformance by the other party to the commitments to extend credit, letters of credit and financial guaranteesis represented by the contractual amount of these instruments. We use the same credit underwriting procedures for making commitments, letters of creditand financial guarantees, as we use for underwriting on-balance sheet instruments. Management evaluates each customer’s creditworthiness on a case-by-case basis and the amount of the collateral, if deemed necessary, is based on the credit evaluation. Collateral held varies, but may include unimproved andimproved real estate, certificates of deposit, personal property or other acceptable collateral. All of these instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The total amount ofthese instruments does not necessarily represent future cash requirements because a significant portion of these instruments expire without being used. Weare not involved in off-balance sheet contractual relationships, other than those disclosed in this report, that could result in liquidity needs or othercommitments, or that could significantly affect earnings. See Note 22 to the consolidated financial statements included in our 2020 10-K and Note 12 to theconsolidated financial statements in this Report for additional information on off-balance sheet arrangements.

Interest Rate Sensitivity Management

The absolute level and volatility of interest rates can have a significant effect on profitability. The objective of interest rate risk management is to identifyand manage the sensitivity of net interest revenue to changing interest rates, consistent with our overall financial goals. Based on economic conditions,asset quality and various other considerations, management establishes tolerance ranges for interest rate sensitivity and manages within these ranges.

Net interest revenue and the fair value of financial instruments are influenced by changes in the level of interest rates. We limit our exposure to fluctuationsin interest rates through policies established by our ALCO and approved by the Board. The ALCO meets periodically and has responsibility for formulatingand recommending asset/liability management policies to the Board, formulating and implementing strategies to improve balance sheet positioning and/orearnings, and reviewing interest rate sensitivity.

One of the tools management uses to estimate and manage the sensitivity of net interest revenue to changes in interest rates is an asset/liability simulationmodel. Resulting estimates are based upon several assumptions for each scenario, including loan and deposit re-pricing characteristics and the rate ofprepayments. The ALCO periodically reviews the assumptions for reasonableness based on historical data and future expectations; however, actual netinterest revenue may differ from model results. The primary objective of the simulation model is to measure the potential change in net interest revenueover time using multiple interest rate scenarios. The base scenario assumes rates remain flat and is the scenario to which all others are compared, in order tomeasure the change in net interest revenue. Policy limits are based on immediate rate shock scenarios, as well as gradually rising and falling rate scenarios,which are all compared to the base scenario. Our assumptions include floors such that market rates and discount rates do not go below zero. Other scenariosanalyzed may include delayed rate shocks, yield curve steepening or flattening, or other variations in rate movements. While the primary policy scenariosfocus on a 12-month time frame, longer time horizons are also modeled.

Our policy is based on the 12-month impact on net interest revenue of interest rate shocks and ramps that increase from 100 to 400 basis points or decrease100 to 200 basis points from the base scenario. In the shock scenarios, rates immediately change the full amount at the scenario onset. In the rampscenarios, rates change by 25 basis points per month. Our policy limits the projected change in net interest revenue over the first 12 months to an 8%decrease for each 100 basis point change in the increasing and decreasing rate ramp and shock scenarios. The following table presents our interestsensitivity position at the dates indicated.

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Table 15 - Interest Sensitivity

Increase (Decrease) in Net Interest Revenue from Base Scenario

at June 30, 2021 December 31, 2020

Change in Rates Shock Ramp Shock Ramp100 basis point increase 3.58 % 2.63 % 3.80 % 2.88 %100 basis point decrease (3.53) (3.20) (1.89) (1.82)

Interest rate sensitivity is a function of the repricing characteristics of the portfolio of assets and liabilities. These repricing characteristics are the timeframes within which the interest-earning assets and interest-bearing liabilities are subject to change in interest rates either at replacement, repricing ormaturity. Interest rate sensitivity management focuses on the maturity structure of assets and liabilities and their repricing characteristics during periods ofchanges in market interest rates. Effective interest rate sensitivity management seeks to ensure that both assets and liabilities respond to changes in interestrates on a net basis within an acceptable timeframe, thereby minimizing the potentially adverse effect of interest rate changes on net interest revenue. We have discretion in the extent and timing of deposit repricing depending upon the competitive pressures in the markets in which we operate. Changes inthe mix of earning assets or supporting liabilities can either increase or decrease the net interest margin without affecting interest rate sensitivity. Theinterest rate spread between an asset and its supporting liability can vary significantly even when the timing of repricing for both the asset and the liabilityremains the same, due to the two instruments repricing according to different indices. This is commonly referred to as basis risk. Derivative financial instruments are used to manage interest rate sensitivity. These contracts generally consist of interest rate swaps under which we pay avariable rate (or fixed rate, as the case may be) and receive a fixed rate (or variable rate, as the case may be). In addition, investment securities andwholesale funding strategies are used to manage interest rate risk.

Derivative financial instruments that are designated as accounting hedges are classified as either cash flow or fair value hedges. The change in fair value ofcash flow hedges is recognized in OCI. Fair value hedges recognize in earnings both the effect of the change in the fair value of the derivative financialinstrument and the offsetting effect of the change in fair value of the hedged asset or liability associated with the particular risk of that asset or liabilitybeing hedged. We have other derivative financial instruments that are not designated as accounting hedges, but are used for interest rate risk managementpurposes and as effective economic hedges. Derivative financial instruments that are not accounted for as accounting hedges are marked to market throughearnings.

Our policy requires all non-customer derivative financial instruments be used only for asset/liability management through the hedging of specifictransactions, positions or risks, and not for trading or speculative purposes. Management believes that the risk associated with using derivative financialinstruments to mitigate interest rate risk sensitivity is appropriately monitored and controlled and will not have any material adverse effect on financialcondition or results of operations. In order to mitigate potential credit risk, from time to time we may require the counterparties to derivative contracts topledge cash and/or securities as collateral to cover the net exposure.

Liquidity Management

Liquidity is defined as the ability to convert assets into cash or cash equivalents without significant loss and to raise additional funds by increasingliabilities. Liquidity management involves maintaining the ability to meet the daily cash flow requirements of customers, both depositors and borrowers.The primary objective is to ensure that sufficient funding is available, at a reasonable cost, to meet ongoing operational cash needs and to take advantage ofrevenue producing opportunities as they arise. While the desired level of liquidity will vary depending upon a variety of factors, our primary goal is tomaintain a sufficient level of liquidity in all expected economic environments. To assist in determining the adequacy of our liquidity, we perform a varietyof liquidity stress tests. We maintain an unencumbered liquid asset reserve to help ensure our ability to meet our obligations under normal conditions for atleast a 12-month period and under severely adverse liquidity conditions for a minimum of 30 days.

An important part of the Bank’s liquidity resides in the asset portion of the balance sheet, which provides liquidity primarily through loan interest andprincipal repayments and the maturities and sales of securities, as well as the ability to use these assets as collateral for borrowings on a secured basis.

The Bank’s main source of liquidity is customer interest-bearing and noninterest-bearing deposit accounts. Liquidity is also available from wholesalefunding sources consisting primarily of Federal funds purchased, FHLB advances, and brokered deposits. These sources of liquidity are generally short-term in nature and are used as necessary to fund asset growth and meet other short-term liquidity needs.

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In addition, because the Holding Company is a separate entity and apart from the Bank, it must provide for its own liquidity. The Holding Company isresponsible for the payment of dividends declared for its common and preferred shareholders, and interest and principal on any outstanding debt or trustpreferred securities. The Holding Company currently has internal capital resources to meet these obligations. While the Holding Company has access to thecapital markets and maintains a line of credit as a contingent funding source, the ultimate sources of its liquidity are subsidiary service fees and dividendsfrom the Bank, which are limited by applicable law and regulations. Effective July 1, 2021, the Bank became a South Carolina state-chartered bank, whichpermits the Bank to pay a dividend of up to 100% of its current year earnings without requesting approval of the South Carolina Board of FinancialInstitutions, provided certain conditions are met. Prior to the conversion to a South Carolina state-chartered bank, Georgia law generally limited thepayment of dividends by the Bank from retained earnings of up to 50% of its prior year earnings without requesting approval of the Georgia Department ofBanking and Finance. Holding Company liquidity is managed to a minimum of 15-months of positive cash flow after considering all of its liquidity needsover this period.

At June 30, 2021, we had sufficient qualifying collateral to provide borrowing capacity for FHLB advances of $1.26 billion, as well as unpledgedinvestment securities of $3.78 billion that could be used as collateral for additional borrowings. In addition, we have the ability to attract retail deposits bycompeting more aggressively on pricing.

Significant uses and sources of cash during the six months ended June 30, 2021 are summarized below. See the consolidated statement of cash flows in thisReport for further detail.

• Net cash provided by operating activities of $162 million reflects net income of $144 million adjusted for non-cash transactions, gains on sales ofsecurities and other loans and changes in other assets and liabilities. Significant non-cash transactions for the period included a $25.9 millionrelease of provision for credit losses and deferred income tax expense of $14.6 million.

• Net cash used in investing activities of $1.34 billion primarily consisted of purchases of AFS and HTM debt securities of $1.91 billion, partiallyoffset by proceeds from securities sales, maturities and calls, reflecting our strategic decision to deploy excess liquidity into the securitiesportfolio.

• Net cash provided by financing activities of $989 million was driven by our strong deposit growth as our net increase in deposits totaled $1.10billion, which was partially offset by our repayment of long-term debt of $65.6 million and dividends on common and preferred stock of $36.0million.

In the opinion of management, our liquidity position at June 30, 2021 was sufficient to meet our expected cash flow requirements.

Capital Resources and Dividends Shareholders’ equity at June 30, 2021 was $2.09 billion, an increase of $78.8 million from December 31, 2020 primarily due to year-to-date earningspartially offset by dividends declared and a decrease in the value of AFS debt securities.

The following table shows capital ratios, as calculated under applicable regulatory guidelines, at June 30, 2021 and December 31, 2020. As of June 30,2021, capital levels remained characterized as “well-capitalized” under prompt corrective action provisions in effect at the time.

Additional information related to capital ratios, as calculated under regulatory guidelines, as of June 30, 2021 and December 31, 2020, is provided in Note11 to the consolidated financial statements in this Report.

Table 16 – Capital RatiosUnited Community Banks, Inc.

(Consolidated) United Community Bank

MinimumWell-

Capitalized

Minimum Capital PlusCapital Conservation

BufferJune 30,

2021December 31,

2020June 30,

2021December 31,

2020Risk-based ratios:

CET1 capital 4.5 % 6.5 % 7.0 % 12.59 % 12.31 % 13.21 % 13.31 %Tier 1 capital 6.0 8.0 8.5 13.34 13.10 13.21 13.31 Total capital 8.0 10.0 10.5 15.09 15.15 14.03 14.28

Leverage ratio 4.0 5.0 N/A 9.26 9.28 9.16 9.42

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Effect of Inflation and Changing Prices A bank’s asset and liability structure is substantially different from that of an industrial firm in that primarily all assets and liabilities of a bank are monetaryin nature with relatively little investment in fixed assets or inventories. Inflation has an important effect on the growth of total assets and the resulting needto increase equity capital at higher than normal rates in order to maintain an appropriate equity to assets ratio. Management believes the effect of inflation on financial results depends on our ability to react to changes in interest rates, and by such reaction, reduce theinflationary effect on performance. We have an asset/liability management program to manage interest rate sensitivity. In addition, periodic reviews ofbanking services and products are conducted to adjust pricing in view of current and expected costs.

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Item 3. Quantitative and Qualitative Disclosure About Market Risk There have been no material changes in our market risk as of June 30, 2021 from that presented in our 2020 10-K. Our interest rate sensitivity position atJune 30, 2021 is set forth in Table 15 in MD&A of this Report and incorporated herein by this reference. Item 4. Controls and Procedures

(a) Disclosure Controls and Procedures. Under the supervision and with the participation of our management, including our principal executive officerand principal financial officer, we conducted an evaluation of our disclosure controls and procedures (as such term is defined in Exchange Act Rule 13a-15(e)) as of June 30, 2021. Based on that evaluation, our principal executive officer and chief financial officer concluded that our disclosure controls andprocedures were effective as of the end of the period covered by this report.

(b) Changes in Internal Control Over Financial Reporting. No change in our internal control over financial reporting (as such term is defined inExchange Act Rule 13a-15(f)) occurred during the fiscal quarter ended June 30, 2021 that materially affected, or is reasonably likely to materially affect,our internal control over financial reporting.

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Part II. OTHER INFORMATION

Item 1. Legal Proceedings In the ordinary course of business, the Holding Company and the Bank are parties to various legal proceedings. Additionally, in the ordinary course ofbusiness, the Holding Company and the Bank are subject to regulatory examinations and investigations. Based on our current knowledge and advice ofcounsel, in the opinion of management there is no such pending or threatened legal matter which would result in a material adverse effect upon ourconsolidated financial condition or results of operations.

Items 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year endedDecember 31, 2020 filed with the SEC on February 25, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity SecuritiesThe following table contains information regarding purchases of our common stock made during the quarter ended June 30, 2021 by or on behalf of Unitedor any “affiliated purchaser,” as defined by Rule 10b-18(a)(3) of the Exchange Act:

(Dollars in thousands, except for per share amounts)

TotalNumber of

SharesPurchased

AveragePrice Paidper Share

Total Number ofShares Purchasedas Part of PubliclyAnnounced Plans

or Programs

Approximate DollarValue of Shares that MayYet Be Purchased Underthe Plans or Programs

April 1, 2021 - April 30, 2021 — $ — — $ 50,000 May 1, 2021 - May 31, 2021 150,000 34.01 150,000 44,899 June 1, 2021 - June 30, 2021 — — — 44,899 Total 150,000 $ 34.01 150,000 $ 44,899

In November of 2020, United’s Board re-authorized its common stock repurchase program to permit the repurchase of up to $50.0 million of its common stock. The

program is scheduled to expire on the earlier of the repurchase of our common stock having an aggregate purchase price of $50 million or December 31, 2021. Under theprogram, shares may be repurchased in open market transactions or in privately negotiated transactions, from time to time, subject to market conditions, includingtransactions outside the safe harbor provided by Exchange Act Rule 10b-18. The approved share repurchase program does not obligate us to repurchase any dollar amountor number of shares.

(1)

(1)

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Item 6. Exhibits

(d) Exhibits. See Exhibit Index below.

EXHIBIT INDEX

Exhibit No. Description

2.1 Agreement and Plan of Merger and Reorganization, dated as of May 26, 2021, by and between United Community Banks, Inc.and Aquesta Financial Holdings, Inc. (incorporated by reference from Annex A to the proxy statement/prospectus contained inUnited Community Banks, Inc.’s Registration Statement on Form S-4 filed with the SEC on July 29, 2021).

2.2 Agreement and Plan of Merger, dated as of July 14, 2021, by and between United Community Banks, Inc. and Reliant Bancorp,Inc. (incorporated herein by reference to Exhibit 2.1 to United Community Banks, Inc.’s Current Report on Form 8-K dated July14, 2021 and filed with the SEC on July 15, 2021).

3.1 Composite Restated Articles of Incorporation of United Community Banks, Inc. as amended through June 30, 2021 (incorporatedherein by reference to Exhibit 3.1 to United Community Banks, Inc.’s Registration Statement on Form S-4 filed with the SEC onJuly 29, 2021).

3.2 Amended and Restated Bylaws of United Community Banks, Inc., as amended (incorporated herein by reference to Exhibit 3.2 toUnited Community Banks, Inc.’s Quarterly Report on Form 10-Q for the period ended March 31, 2015, filed with the SEC onMay 11, 2015).

31.1 Certification by H. Lynn Harton, President and Chief Executive Officer of United Community Banks, Inc., pursuant to ExchangeAct Rule 13a-14(a).

31.2 Certification by Jefferson L. Harralson, Executive Vice President and Chief Financial Officer of United Community Banks, Inc.,pursuant to Exchange Act Rule 13a-14(a).

32 Certification of CEO and CFO pursuant to 18 U.S.C. Section 1350.

101 Interactive data files for United Community Bank, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021,formatted in Inline XBRL: (i) the Consolidated Balance Sheets (unaudited); (ii) the Consolidated Statements of Income(unaudited); (iii) the Consolidated Statements of Comprehensive Income (unaudited); (iv) the Consolidated Statements inShareholders’ Equity (unaudited); (v) the Consolidated Statements of Cash Flows (unaudited); and (vi) the Notes to ConsolidatedFinancial Statements (unaudited).

104 The cover page from United Community Bank’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (formattedin Inline XBRL and included in Exhibit 101)

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http://www.sec.gov/Archives/edgar/data/857855/000110465921097702/tm2123399-1_s4.htm






http://www.sec.gov/Archives/edgar/data/857855/000110465921092188/tm2122201d1_ex2-1.htm






http://www.sec.gov/Archives/edgar/data/857855/000157104915003882/t82199_ex3-2.htm

http://www.sec.gov/Archives/edgar/data/857855/000157104915003882/t82199_ex3-2.htm

Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by theundersigned thereunto duly authorized.

UNITED COMMUNITY BANKS, INC. /s/ H. Lynn Harton H. Lynn Harton President and Chief Executive Officer (Principal Executive Officer) /s/ Jefferson L. Harralson Jefferson L. Harralson Executive Vice President and Chief Financial Officer (Principal Financial Officer) /s/ Alan H. Kumler Alan H. Kumler Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) Date: August 6, 2021

57

Exhibit 31.1

I, H. Lynn Harton, certify that: 1. I have reviewed this quarterly report on Form 10-Q of United Community Banks, Inc. (the “Registrant”); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f))for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the

effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent

fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect,the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control

over financial reporting.

Date: August 6, 2021 /s/ H. Lynn Harton

H. Lynn Harton President and Chief Executive Officer of the Registrant

Exhibit 31.2

I, Jefferson L. Harralson, certify that: 1. I have reviewed this quarterly report on Form 10-Q of United Community Banks, Inc. (the “Registrant”); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined inExchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f))for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our

supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent

fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect,the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control

over financial reporting.

Date: August 6, 2021 /s/ Jefferson L. Harralson Jefferson L. Harralson Executive Vice President and Chief Financial Officer of the Registrant

Exhibit 32

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of United Community Banks, Inc. (“United”) on Form 10-Q for the period ending June 30, 2021 filed with theSecurities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of United certifies, pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of United.

/s/ H. Lynn Harton Name: H. Lynn Harton Title: President and Chief Executive Officer

Date: August 6, 2021 /s/ Jefferson L. Harralson Name: Jefferson L. Harralson Title: Executive Vice President and Chief Financial Officer Date: August 6, 2021

U N I T E D C O M M U N I T Y B A N K S , I N C

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